Repair your Credit.
Have you been bankrupt or have bad credit ?
Are you in a bad situation that you think ,you will never be abble to establish your credit again?
Yes, it could be challenging to recover from a Bankrupcy or a really bad credit file.
It is challenging but faisable.
You want to improve your credit score, see my five best tips to help you improve your credit despite the situation as bad it could be, there is some hope.
1 – Active Credit
There is a lot of peoples that think, when you have a bad credit file or have filled for bankrupcy in the pass that you will not have access to credit for a long time. Not true, see why.
One of the main way to help you improve your credit is: To have some type of actif credit reported at the credit bureau, informing them you have some activities happening on file and you are paying on time.
The only secret it’s to show the bureaus that you are financialy responsible!
The major concern is interest rate, when you do apply for a loan, let’s say for a car or a store card, the interest rate will be to the roof (20% or more)but there is hope… What it could be?
Having maybe a secure card, see below in details…
2 – Secure Credit Card
You must be thinking, what will be the conditions to have a secure credit card, do i need my spouse signature, i could already feel the argument going around this new credit card. It is a simple task ,let me explain…
Don’t even try to open a credit account with the bank ,there is some company online that offer secure credit card like: Capital One… Visit their website and see for yourself what could be the best option. When applying, do send at the same time a security check containing the same amount of your request including the fees.
This is one of the best option to help you increase your credit but there is a important part to it… See why…
3 – Credit Rules
As you already know, it is important to have a open account as a starting point. So you need to receive your confirmation of approval by the credit company, you should receive also a valid credit card with the amount secured.
Important to pay your bills on time and in FULL, the word FULL is important because you don’t want to pay for any interest rate, secondly it will send a red flag saying you are not in control… Discipline is key.
Once your credit score start to get some improvement, you should switch to a regular credit card this will help increase your credit score a lot more but again you will also keep your secure card and use it once a month.
How to be discipline when dealing with 2 cards or more ?
4 – Bills and Calendars
How to go around and pay our bills on time and in Full every months. Especially the one attach to your credit, electric bills, credit cards, your car , mortgage and more… All of those are reported to the credit bureau and once you failed on them, it will bring your score rock bottom. We have to avoid this situation.
Paying on time our bills is the only way to make it happen for us, to have a better chance to WIN a proper credit in the futur from a Financial perspective.
Need to work on a calendar to help us pay our bills on time, auto pay by the week maybe…Instead of paying a big chunk of money ,why not pay a small amount to help us manage our budget and at the same time pay the bills that we need to take care of on time. Have some reminders, on your emails, voice mail, have some notes around to not forget to pay.
Just take the necessary steps to help you succeed to achieve your big goal to have more options at the end of the day.
Applying for credit is a good thing but be aware of credit fraud promissing to fix your credit in a snap!
5 – Credit Fraud
There is no easy fix, to help you restore your credit to a better standing. It will require hard work and dedication.
Don’t believe the hype about those companies,telling you they will help you repair your credit because at the end the only thing they need from you , is your money! Don’t get me wrong, there is some great companies out there that will help you but why not do the work yourself. It is your money after all.
It’s only a question of time,
Going through a bankrupcy or a bad financial situation could be devastating, difficult, draining,you don’t know where to put yourself but there is hope. It will require a lot of discipline, commitment, hard work but at the end it will be beneficial for you and your family.
Yes, it’s not everybody that need credit to function in Life , everybody have their own opinion on it and i respect that. The only thing i could say is: take the time to evaluate your situation, what you want to accomplish in the next year, any financial projects (purchase a house, a car, taking a vacation…).Once you have the information in hand, it is easier to take the necessary steps to make it happen.
Diligence is the main key of your success and will help you secure in the futur better loans. To all of you who are in a bad financial situation… Don’t give up!