Steps to Rebuilding Credit

While many consumers need credit repair services, the most important factor in maintaining good credit health is you. At Veracity, the soul of the company is our knowledge-base and our ability to pass this knowledge to consumers. Whether you signup for out repair services or take advantage of our new consulting only service, Credit Advisor, you will always receive informative advice regarding credit. We cannot physically rebuild your credit but we can advise you on the steps you can take to rebuilding your credit.

Open a Checking Account

Rebuilding credit is a time costly task but the rewards greatly outweigh any negatives related to time or difficulty. There are some relatively easy things you can do to rebuild you credit. We suggest you start by opening a checking account. A company called Chexsystems monitors checking accounts and reports how well you manage your money. Credit unions are the best place to start out when attempting to rebuild your credit. Also, some checking accounts will allow you to use their credit cards as overdraft protection.

Manage your Credit Cards

Managing your credit cards is also an easy way to build positive credit which will raise your credit score. You should never have a balance over 30% of your credit limit. Work to pay down your credit cards to below the 30% mark and focus on the highest interest rate first. When using credit, ideally you want to pay off the balance each month. Setup an auto debit system with your credit card company so at least you will never miss a payment.

Secured Credit Cards

Opening a secured credit card is often a great way to reestablish positive credit. A secured card requires a cash collateral deposit that becomes the credit line for that account. Typically a starting secure credit card has a limit of $300-$500. So if you open a $300 card, you must add $300 to the account which will be your credit limit. You may be able to add to the deposit to add more credit, or sometimes a bank will reward you for good payment and add to your credit line without requesting additional deposits. One of the best places to start a secured credit account is with a credit union. Credit unions are excellent places to do your banking and often offer consumer friendly services. For a list of great secured cards visit www.bankrate.com.

Piggy Back No More

While piggy backing or becoming an unauthorized user on someone else's credit card used to be a strategy in rebuilding credit, we highly suggest you avoid this tactic. In 2008, FICO decided that it would no longer recognize unauthorized users when determining credit scores. The 3 bureaus have been slow to adopt this but attempting to piggyback will most likely be a waste of time. To learn more click here.

Conclusion

The best way to rebuild your credit is to become a credit savvy consumer. Live within your means and only use credit when you absolutely need it. Ultimately if you want to be credit healthy, it will fall on your shoulders to build and maintain positive credit.

Build Your Credit with a
    Secured Credit Card

With a secured credit card, you can:

  • Use it wherever major cards are accepted
  • Make purchases online or over the phone
  • Establish a secured line of credit that will help increase your credit score

Learn More

Get a FREE Credit Consultation.

Call 1-866-518-2194 or click here.

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