Starting Over from Bad Credit

August 9th, 2017 | Author:

[Y]ou hit rock bottom with your credit. All of your accounts went to collections and your car was repossessed. You don’t even want to check your credit score because you know it’s bad. While the situation might seem hopeless, you can turn it around. Once you’ve lost any credit worthiness, you are ready to work on rebuilding.

Check Your Credit
As much as you don’t want to, you need to check your credit report. You need to know what it says, the good and the bad. Make sure everything is accurate even if it isn’t good. Make a note of all of the negative information listed. Don’t let it overwhelm you, but just know what others will see.

Get a Secured Credit Card

If your credit is really bad, you probably won’t qualify for a traditional credit card. However, you can get a secured credit card, which means you will pay a deposit to the creditor in return for a card with that much credit. If you pay $500, your credit card will have a credit limit of $500. Make sure the creditor reports to at least one of the credit reporting agencies. It will report just like any other credit card, so as long as you pay your bill on time or pay the balance, it will add positive information to your account.

Get a Small Personal Loan

If you can get approved for a collateral loan through your bank or another lender, this is another way you can begin re-establishing your credit. A collateral loan uses something you own to back the loan if you should default.

Wait

Unfortunately, you’ll have to play the waiting game. It often takes six months for the information on a new loan or credit card to show up on your credit report. At that time, you’ll see at least a small improvement in your credit score. Once you have begun to establish an improved credit history, other creditors will be willing to give you a chance. Then, you can get an unsecured credit card or other form of credit to help you continue to build good credit.

Newest Answers

Big Changes Coming to Credit Reports

August 18th, 2017 | Author:
h

[I]f you have a bad credit score, you may benefit from the changes coming to credit reports soon. If you’re one of the lucky ones, you’ll see your credit score improve. In fact, it is expected that up to seven percent of those who have credit histories could see a benefit. What Changes Most civil […]

Continue Reading »

Be Realistic When Budgeting to Get Out of Debt

August 17th, 2017 | Author:
h

[Y]ou’re deep in debt and you want to pay it off to improve your credit score and to make life simpler. You want to pay it off as quickly as possible, which means making some major changes in your finances and life. Many experts tell you to stop spending any more money than you have […]

Continue Reading »

3 Ways You Can Waste Your Money

August 11th, 2017 | Author:
h

[I]f you’re trying to become more financially stable and improve your credit rating, you must be careful with how you spend your money. While you don’t want to give up everything fun in life in order to be frugal, you also want to avoid wasting your money on unnecessary expenses. Here are three ways people […]

Continue Reading »

Starting Over from Bad Credit

August 9th, 2017 | Author:
h

[Y]ou hit rock bottom with your credit. All of your accounts went to collections and your car was repossessed. You don’t even want to check your credit score because you know it’s bad. While the situation might seem hopeless, you can turn it around. Once you’ve lost any credit worthiness, you are ready to work […]

Continue Reading »

How to Talk to a Boyfriend/Girlfriend about Their Credit Rating

August 7th, 2017 | Author:
h

[I]f you’ve been dating someone for a while, you may be getting serious. Before you start dreaming about the perfect wedding day or what life will be like with 2.5 kids and a dog, you need to know you’re on the same page about important issues. While many people think nothing of talking about how […]

Continue Reading »

3 Ways Credit Matters to Everyone

August 4th, 2017 | Author:
h

[Y]ou pay everything with cash. Your motto is “If I can’t pay cash, I can’t afford it.” That means no credit ever. You may assume that you don’t need to worry about your credit score if you don’t plan to use credit to buy anything. Unfortunately, credit isn’t just about loans and credit cards. A […]

Continue Reading »

3 Tips to Help Your Kids When They Have Summer Jobs

August 2nd, 2017 | Author:
h

[I]f your kids are old enough to take on a summer job, now is a golden opportunity to teach them about money and finances. If you start them out right, they will know how to handle money and financial responsibility for when they are earning a full-time income. Here are three tips to use this […]

Continue Reading »