- 1). Obtain and use a secured credit card. Apply for a major credit card to begin rebuilding your credit file. Pay a security deposit ($300 to $500) and acquire a secured credit card from a bank, or try to obtain an unsecured credit card. Be prepared to pay a high interest rate with unsecured cards, if you qualify.
- 2). Get an automobile loan if you need a vehicle. Select finance companies offer no-credit and bad-credit auto loans. Discuss finance options with a loan broker. Sub-prime auto loans have much higher rates than prime loans. However, these loans can help restore your credit to help you qualify for better rates in the future.
- 3). Help raise your low credit score with timely payments. Be sure to make your credit card and auto loan (if applicable) payments on time each month to avoid additional fees and improve your low credit rating. Pay early if necessary.
- 4). Keep your credit card debt manageable. Determine how much you can afford to spend with your credit card each month. Do not exceed this limit, and then pay off the balance every month.
- 5). Continue to pay your student loan, if applicable. Bankruptcies do not erase federal student loan debt. If you have a student loan, begin making timely payments to help improve your credit score. Rather than skip a payment because of insufficient funds, contact your lender to ask for a deferment or forbearance (payments are temporarily suspended).
- Advertisement -
- Advertisement -