Rebuild Your Credit
Rebuilding your credit does not have to be a scary or intimidating process. Lots of lenders and financial
institutions like to tell you that it is impossible to rebuild your credit, that your credit
record is the adult version of your "permanent record" from school. Once a ding goes onto it, it is there.for
This, of course is not true. A credit history only goes back seven years (possibly as much as ten check the laws
in your state regarding credit reporting). Unfortunately this does not mean that you can just disappear for seven
years and have a completely clear credit history. Credit and loan companies report to the credit reporting agencies
with great frequency. The only way to keep them off of your back is to make your payments on time every month and
to pay your debts off responsibly.
Of course, life is not perfect. Sometimes things happen. We get injured and don't have medical insurance to
cover us. We need to do costly repairs to our homes. Sometimes we are just young and stupid. There are plenty of
reasons that debt piles up and debt is nothing to be ashamed of. Having a poor credit history is nothing to be
ashamed of either. Remember, it is possible to rebuild your credit. Here are some tips to get started on the road
to having a good credit rating:
1. Validate all of your debts. Obtain a copy of your credit report and send validation requests to all of the
accounts listed there that say you still owe them money. The companies will have thirty days to respond with proof
that you owe what they say you owe. If they do not provide you with proof, or if they fail to respond, send copies
of your validation request to the credit reporting agencies. By law, not only are the credit reporting agencies
required to delete the account from your history, but the company is required to delete the account from its
2. When you have validation of your debt, look at what you owe and who you owe it too. If you can afford to pay
any of your bills off entirely, do so. When you pay them, request a letter be sent to the credit reporting agencies
showing the accounts have been paid in full. This will help tremendously in rebuilding your credit score.
3. Begin repaying your debt immediately. Call each of your debtors and work out a payment plan and then stick to
it. You will be surprised at how friendly your debtors will be when they realize that you are making a concentrated
effort to pay what you owe. Most of them will be more than happy to figure out a payment plan that works for both
of you. Stick to these payment plans.
The best way to rebuild your credit is to continue paying your bills on time. Paying your bills
on time every month not only rebuilds your credit history but will
greatly improve your overall credit score.
Credit in Minutes Tip #1
Stay on top of your credit report. Most credit reports contain errors. Make sure you check your credit report
every year (you get one free credit report every twelve months) and if there are errors make sure to challenge them
with the reporting credit agency. Credit agencies are required to investigate each and every challenge that gets
Credit in Minutes Tip
Just because you qualify for all of those credit cards does not mean you should get them. A person with too many
credit cards looks sketchy in the eyes of a potential creditor. Think of it this way: if a person is financially
stable does he or she need ten different credit cards? Wouldn’t just one or two suffice?
Credit in Minutes Tip
The best way to raise your credit score is to make all of your payments on time. It sounds too simple to be
true, but that’s all there really is to it. Staying out of debt and/or making all of your debt payments on time
will keep your score up where it should be.