These days, your credit score is more important than ever. As you know, without good credit, you may have a hard time purchasing a car, house or even reserving a hotel room or car! However, recent financial hard times have caused many consumers to fall into overwhelming amounts of credit card debt that have caused damage to their credit scores. The good news is, there are several people who are getting back on their feet and getting their debts paid off. Once they are paid off, it’s time to start working on credit scores. With that said, if you have not yet paid off your debts, I strongly suggest reading this article. However, if you have paid your debts off, here are the steps you should take to start regaining good credit…
Building Your Credit Score After Debt, Step By Step!
Step #1: Get A Secured Credit Card – Although there are several articles out there that tell you to build credit scores using utility bills, this is simply misinformation. The truth is, most utility companies don’t report to credit reporting agencies unless you miss a payment! The best way to show lenders that you are worthy of borrowing again is to start with a secured credit card. Therefore, your first step is to go get one.
Step #2: Make Your Security Deposit – Before you can start using your new secured credit card, you will need to make a security deposit. The security deposit is used to reduce the risk the lender takes when loaning money to people with poor credit scores. The good news is, your security deposit will most likely be refundable after you’ve used your card properly for at least 12 months.
Step #3: Use Your Secured Credit Card – The key here is showing the credit reporting agencies that you are able to maintain a revolving balance. However, if you don’t use your card, you won’t have a revolving balance. Also, it’s important to remember that you should keep your balance below 50% of your credit line. Going over that mark could cause slow times for the growth of your credit scores!
Step #4: Make Your Payments Early – It is a bad idea to get into the habit of making your credit card payments the day they are due. It’s always best to pay at least 2 weeks early. This way, if an emergency happens, you will be sure to have made your payment and will avoid any resulting late fees, interest rate hikes or dings to your credit score.
Step #5: Make More Than Minimum Payments – When you are in the process of building your credit score, it’s important to make more than minimum payments on your credit card on a consistent basis. I always suggest sending at least double your minimum payments to really get your credit score moving!
Step #6: Enjoy The Benefits Of Good Credit Scores – After following this process for 12 to 18 months, you will be able to enjoy the benefits of having Good credit scores again. Keep up the good work and you will soon have excellent credit!



