Don't let the credit repair process overwhelm you. AMERISHOP FINANCIAL is here to help!!
Repairing your credit is not as difficult as you've probably heard it said, but it does take time and diligence. Just use this guide and follow the steps to analyze your credit report, find the mistakes that could hurt your score, get tips on how to dispute those mistakes, and avoid scams.
Steps to Rebuilding Your Credit Score
1. Open a Bank Account For those who have bad credit, opening a bank account may be easier said than done. You may have to check around, but there are banks (such as Wells Fargo) that offer “opportunity” accounts to those who have bad credit. Just be prepared to live with limited services and higher fees until you are able to rebuild your credit.
You should also check with your local banks and credit unions, as they are more likely to be willing to work with you. You can find a credit union near you by going to the National Credit Union Administration (NCUA) website.
2. Get a Secured Credit Card Obtain a Unsecured credit card by using your bank account as collateral. With a unsecured card you can charge up to the amount in your bank account. Avoid cards that charge an application fee, and look for cards with low annual fees. Also, make sure to choose a card that will be reported on your credit report, and, if possible, select a card that will convert to an unsecured card after one year of making on-time payments.
3. Obtain an Installment Loan After working with your bank or credit union for several months and proving that you are a good customer, you may be able to convince them to extend an installment loan to you. Keep it small – less than $1,000, if possible.
The purpose of the loan is not so much to make a purchase as it is to give you another opportunity to show how responsible you are about paying your debts. Keep the loan amount and the payment amounts small enough so that you are sure to be successful in making all payments on time. This is the time to show that you can make regular payments. The best way to do that is to set up automatic payments through your online banking system.
4. Pay Your Student Loans If you owe money on your student loans, then make paying them a priority. These loans follow you throughout your life, and they cannot be discharged through bankruptcy. Once you are in repayment mode, student loans will appear on your credit report. Any missed or late payments will derail your efforts at rebuilding your credit score.
5. Become an Authorized User You may be able to rebuild your credit by leveraging the good credit of a friend or relative and becoming an authorized user on their credit card. They must contact their credit card company and have you added to their account. That credit card will appear on your credit report, and your score will benefit from your friend’s good payment record.
As an authorized user, you’re entitled to a card too – but if you value the friendship, it’s a good idea to decline and not use the credit card at all.
6. Avoid Prepaid Cards Stay away from prepaid debit and credit cards, as they charge fees and high interest rates. Offered by large companies such as Green Dot, Walmart, and NetSpend, they come emblazoned with the Visa or MasterCard logo – but don’t be fooled. You end up paying almost double for any purchases you charge with cards such as these. Furthermore, they don’t typically show up on your credit report, so there is no real benefit to using them.
7. Improve Your Habits It’s time to turn over a new leaf and correct the behaviors that crashed your credit score. Be sure to do the following:
Only keep a couple of credit cards in your possession.
Shred and discard credit card applications that come in the mail.
Don’t max out your credit cards.
Only charge a maximum of 10% of your credit line.
Pay off your card balance in full each month.
Never, ever miss a payment.
If you think you need more support in your reform efforts, please contact our Amerishop Financial customer service office. We provide free assistance and to those who need it.
Finally
Will it be easy to rebuild your credit? Probably not. It requires you to make changes to your spending habits, as well as your outlook on money. Will it be quick? No. It typically takes at least a year to accrue a good payment history that will have any effect on your score, and up to 10 years to remove a bankruptcy.
However, it is definitely worth the effort. Not only will you feel better about yourself, but you’ll have an easier time getting the car, house, or even job you desire when you have good credit.
Visit www.amerishopsas.com or call 877.407.9195 and connect with a funding expert to discover the options that make sense for you and your business.
Kommentare