July 20th, 2013 Published by: marcocarbajo
Restore Your Credit
Looking to restore your credit? Discover how to rebuild
your credit rating whether you filed for bankruptcy, had
a foreclosure, or job loss.
How to Restore Credit after
Getting your financial life and credit back on track after going
through tough times is not an impossible task, by any means,
but it does require an effective and proven plan.
Whether you have filed for bankruptcy, gone through
foreclosure, experienced late payments, collections,
judgments, repossession or the dreaded tax lien, there is hope.
Now, first of all don’t believe for a second that there’s nothing
you can do about your past negative credit history because
there is, which I will cover shortly.
First, let’s talk about getting new credit regardless of how low
your credit score is. The obvious is to open up a secured credit
Well, not exactly.
The key is to establish at least 3 positive trades actively
reporting on each of your reports with Equifax, Transunion,
and Experian. Actively reporting means you’re making regular
payments; a loan that’s paid off does not count.
For example, if you’re currently making timely payments on a
car note but have no other positive credit that’s active then you
should obtain two secured credit cards and use them regularly.
Keep your debt to credit limit ratios on those cards at no more
than 30% and whenever possible increase your limits. The
higher the limit the better it is for you in the future when a
creditor extends an unsecured credit line to you.
But before you go and open up 2-3 secured credit cards you
must select the right lenders too! Did you know some of the
high risk lenders offering secured cards can actually end up
hurting you rather than helping you?
Think about this for a second, if you obtain a secured card from
a high risk lender what does this tell other lenders about you?
It shows you are a high risk!
So, promise me you’ll only open a secured card from a
mainstream lender OK?
Now keep in mind, opening up a few secured credit cards,
making purchases, and paying bills on time is a step in the right
direction, but it does not address the current problem; your
Before we dive into repairing your credit reports, by law you
are entitled to receive one free credit report from each of the
major consumer credit agencies every 12 months. You should
first obtain your free reports at annualcreditreport.com so you
can review it in its entirety.
Remember, it does not have to take a long time to put your
credit problems behind you. Once you begin establishing
new positive payment history, maintain at least three actively
reporting trades and begin repairing your credit reports, you
can restore your good credit ratings and scores.
Stay tuned for the next post where we cover credit restoration
and authorized user accounts.
Ready to repair, restore and reclaim your excellent credit
scores? Submit your name and email below to receive my
FREE course ‘7 Steps To Superior Credit‘ ($497 value) =>
About the author
Marco Carbajo is a business credit expert, author, speaker,
and founder of the Business Credit Insiders Circle. He is a
business credit blogger for AllBusiness, Dun and Bradstreet
Credibility Corp, the SBA Community, and author of “Eight
Steps to Ultimate Business Credit” and “How to Build Business
Credit with No Personal Guarantee.” His articles and blogs
have also been featured in American Express Small Business,
Business Week, The Washington Post, The San Francisco
Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and