Building New Credit
One gauge of your creditworthiness is
having three open trade lines with twelve months of good payment history.
Get three credit cards for example and use them responsibly for a year.
Even if the only things you charge are your groceries and gas for your
car. Always pay timely, don't fall into a poor credit rating after all of
the hard work it took to get you back on your feet. You may have to get a
secured credit card, that is where you place a deposit with the issuer and they
issue you a card, eventually after showing you will pay on time they will return
your deposit and increase your credit limits. You can get a new start with
a new credit card here.
Go to your bank and get a $10,000 loan.
It is very easy, let me explain. You borrow $10,000 from your bank to buy a
$10,000 certificate of deposit (CD) from them. You pledge the CD as collateral
for the loan, they hold the CD for safe keeping. You will have to pay a small
spread on the loan, ie. the CD rate pays 5% and the loan is at 7% so your cost is
2%. You will want to pay the interest payment monthly so there is a pay history
on the loan, the balance of the loan is due when the CD matures.
Make sure that your bank agrees to report the
loan to the credit bureau and request that it is listed "secured" and not
"secured by CD". This will work with any amount of money but a
million dollar loan cost a lot of money in interest. Your credit scores will
improve with your good payment history.
If you would like to get a free copy of
your credit report right now,
Inaccuracies in Credit Reports
Fair Credit Reporting Act * FCRA
steps required to restoring your good credit
a copy of your credit report
Your Credit Report for Inaccuracies
Agencies and your credit file
to settle a debt and negotiate a settlement
your credit rating
Consolidation Loans for Home Owners