How to Rebuild Your Credit

So, after #checkingyourcredit the guy with the bad comb-over and stinky cigar at the dealership said he could arrange a car loan with a “special finance” lender but it would be at a slightly higher one billion percent annual interest rate, along with some “miscellaneous fees.” And you’re beginning to think it’s time to rebuild your credit. You think?!

Here’s the problem. Like it or not, we all need credit at certain times. Like getting financed for a #carloan. Here’s help. Click here for FI-Q lesson 1 Many people, especially people under 40, don’t pay much attention to their #creditscore – a measure of how likely you are to repay a loan – until they get turned down for a loan because of a #poorcredit history. Luckily, there’s something you can do about it. It’ll take some time but it’ll be worth it in the end. (source: Bureau of Consumer Financial Protection consumerfinance.gov)

  1. #Payyourbills on time, every time. It’s a habit you’ll get use to and feel good about when you do.
  2. Don’t get anywhere near your limit on credit cards. Keep charges about 30% of your limit.
  3. Don’t apply for lots of credit in a short period of time. The credit gods don’t like that.
  4. If you use a credit card pay off the balance every month. Do it! And keep it up. Good credit is built over time. And keeping your balance at 30% or less of your credit limit makes paying it off each month a lot easier.
  5. If you can’t get a regular credit card, get a secured credit card. You’ll put an amount equal to your credit limit in a special account as security.
  6. Check you credit reports for errors. They happen and it’s up to you to have the credit bureaus correct them. They’ll help you.

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