How to Build Up Your Credit Again
Congrats on wanting to learn how to build up your credit again. Having credit is great but as we both know, it is a double edged sword as well.
A number of things can lower your credit score but honestly, if you are not willing to change the way you spend money, learning how to build up your credit again becomes pointless.
There are four to six people within two blocks of you in your neighborhood, that are also struggling with credit, so you’re not alone.
Everyone brings up the economic crash as if it is a real person that you can point too. People blame Wall Street and they also blame the housing collapse for their troubled times.
I won’t lie to you; building up your credit again will be a task. Your credit score and history won’t return to above normal status over night but you can build up your credit again rather quickly.
If you do not already have a copy of your credit history, you need to get a copy of it.
You May Be Right
Just because you do not agree with the amount of money that you owe does not mean that you can just walk away and not pay the amount.
You may be right, the charges on your phone bill or cable bill are wrong. Even after arguing your point if you can not get the issue fixed, do not skip out on the bill.
Instead, offer to make installments and cancel the service. If you can not cancel without paying the entire balance, downgrade the service to its lowest level.
Example: Instead of the $150 unlimited plan, switch to the $30 hundred-minute plan. Use the money that you are saving to pay down your balance.
Yup, these types of companies do not report that you paid on time for all of those years but when you don’t pay they sure will.
Time to Spare
One thing that you should not do if you want to learn how to build up your credit again is wait around.
Unless you are 18 years old, you do not have time to wait 7 to 10 years for collections to fall off your credit report.
Most people relying on this method get the math wrong when they try to calculate when their credit will clear.
The 7 years does not start from the day that you pull your credit report. If you have a collection on your report from 3 years ago, it will drop off in 4 more years.
Unfortunately, we live in a credit based society now and the only people that get excited when they see cash are children.
Sure cash is always accepted but there is a major drawback to using cash to pay for everything. You want to know how to build up your credit again and cash does not build or help your credit.
While you are working to pay off credit debt, obtaining a few secured credit cards that report to the bureaus is a good idea.
Although the money is actually yours good credit entries on your report each month still help you out.