Six Steps To Rebuild Your Credit From: www.youfixyourcredit.net


1 Request a copy of your credit report from http://www.annualcreditreport.com/ it's free. If you find any errors request the bureua to fix the mistake.Step

2 Repay outstanding debt as quickly as possible. Start with the higest interest rate first. Step

3 If your debt is substantial do your own deb conlsolidation. Contact your creditors inform them that you intend to pay the debt but you need to have the interest waived. Or offer to settle the debt for half of what you owe. Negotiate a settlement with them. If that is too overwhelming then contact a non-profit credit-counseling organization and work out a debt consolidation plan. Do not use a service that uses the term debt consolidation loan.Step

4 Rethink your spending. Close your credit card accounts and cut up the cards. Buy only the essential food (not fast food) and gas. Use the rest of your paycheck to pay your ballances. If you have an extra vehicle sell it to pay a balance or borrow from a helpful relative and pay them back right away.Step

5 Begin to re-establish good credit. Pay all utilities and rent on time. Plan a budget. Keep your bank account maintained. Also keeping the same residence and job is a good sign to the credit bureau.Step

6 Open a new credit card. Keep in mind it may be hard to get a good itrest rate at first. Look for the lowest interest you can get with 0 or low annual fees. Once you have had bad credit you may need to pay an annual membership fee in order to get a card. Or just get a gas credit card. Pay these promptly and in full monthly if possible to establish good credit. You may also consider a secured credit card instead of an unsecured credit card.