Whether you are jut exiting bankruptcy and looking to rebuild your credit future or are in need of a little credit score boost, there are some easy ways to achieve that goal. It is important to remember that not all lines of credit are the same and rebuilding or boosting credit can be a time consuming process. Follow these simple tips to get your credit back on track:
Review your credit report– the best place to start is by looking at your credit report. Look for inaccuracies and dispute any missing or incorrect information with the credit bureau until resolved. Identify areas that need improvement, such as a delinquent account or one with a high outstanding balance. It is best to work on the debts you do have before considering a new line of credit.
Shop around-there are many different types of credit accounts, each offering different risks and benefits. In general, it is best to find a low interest unsecured card. This may mean a lower spending limit in order to get the best rate, but that is far better than getting trapped in a high interest, high limit card. Never take out a secured loan right after bankruptcy or other debt troubles, instead find the best unsecured card or loan until a better credit history has been established.
Get the right loan– A new trend in finance is the use of prepaid credit cards. While these cards may prevent overspending and penalty fees, they will do absolutely nothing to help your credit. In order to improve your credit standing you must take out a loan, or borrow money. Finding the right unsecured or secured credit card is essential for your credit future.
Keep it small and simple-finding the right line of credit is important, but it does nothing for your credit standing if used incorrectly. The idea is to obtain one to two low limit cards that you can maintain a manageable balance on for six to twelve months. Keep your debt balance below 30 percent of your overall spending limit and make consistent payments in order to maximize a positive credit history.