Building Credit AFTER getting OUT of Debt?

Are there any ways to build my credit score up after getting out of debt? I do NOT have credit cards or anything like that. I%26#039;ve NEVER filed bankruptcy, either. But I DID have credit cards and maxed them out (and beyond) to cover medical bills. Now, I%26#039;m paying them off and ALMOST totally debt free, but what can I do to get my score UP?

Building Credit AFTER getting OUT of Debt?

The fastest way to do so is to take a small loan (whatever you can afford to secure with an equal amount of cash). You can go down to your local bank that you have an account with, ask for a personal loan and tell them you will secure it with cash.

Then make your payments on time, and do not pay it off early. The idea is to establish a payment history so try and take the loan out for a 12-month term.

Do this with several separate loans if possible. The more loans the more history, the faster your credit is repaired.

You can also get a secured credit card, which would have the same effect and uses the same principal of securing your line of credit with an equal amount of cash on deposit with them.

Think carefully before you chose that option. Make certain you feel comfortable you have learned your lesson and will not get yourself into trouble again by over extending yourself since you will have to use the card to incur some debt to repay and establish the payment history.

Also consider the interest rate will be exceedingly high and if you should exceed your credit limit or fall one day late on a payment, it will skyrocket to the ridiculous range (30% or more depending on your states laws). None of these issues exist with your bank and the rate, while higher than other types of loans, is not overly exorbitant.

Your credit should be repaired within one year to the point that you can reasonably accomplish most things such as buying a home or getting a car loan.

Building Credit AFTER getting OUT of Debt?

The only way to build creidit is with a credit card. Get one with a low maximum like 100 dollars and just use it for one thing like gasoline or groceries. And each time the bill comes make the payment in full. NO min payment!

Building Credit AFTER getting OUT of Debt?

If you need a car to get around . There are many places that offer credit repair when financing a car. ...

Building Credit AFTER getting OUT of Debt?

get a secured card from Bank of America.. and after 9 months of paying your bills on time it turns into a credit card

Building Credit AFTER getting OUT of Debt?

One way to do it is to apply for credit cards from gasoline stations. They carry small credit limits, and if you pay your bill on time each month, it will have a favorable impact on your score.

Building Credit AFTER getting OUT of Debt?

Actually, just paying off the bills should bring it up considerably. My score went up by 32 points when I paid off my maxed out credit cards as well. A few things to remember are:

Applying for too many cards WILL bring down your score

Having too many cards will also bring it down.

Wait a few months after paying your debts. Check your credit report yourself to see if it went up. Don%26#039;t apply for cards so soon. Some of the cards you used to have may be interested in reopening your old accounts. (try to limit yourself to one card). The reason I say to try your old cards is because you have credit history with them which helps your score as well.

Building Credit AFTER getting OUT of Debt?

If you dont want loans (aka Debt) than stick with 2-3 credit cards and don%26#039;t even use them. Just leave them open with no balances. You dont have to actually have a payment in order to have it report as %26quot;paid as agreed%26quot; or %26quot;current%26quot;

Pay those cards off that you have, and keep the oldest ones in place (assuming they dont have monthly/annual fees to consider) and cancel only the newest ones.

Building Credit AFTER getting OUT of Debt?

One important thing you can do is protect against

this situation ever happening again. Find out

how a person in the same situation as yourself

avoided bankruptcy and kept his good credit score

by. The story is at the end of the movie below.