No need for my bio, I'll get straight into it.
Rebuilding credit takes patience and commitment. The following steps will help you with building your credit profile in no time. These tips are 100% from my personal experience. I won't be using too many abbreviations as it can confuse a few people. I'll make this as reader friendly as possible.
- Open up an account with a Credit Union (I have Navy Fed, USAA, PenFed and DCU). Obtaining a CU(Credit Union) checking and savings account will be very beneficial in your rebuilding phase.
- Open both checking and savings account with your new CU account, you will need them.
- Whether you work part time or full time you must save something PER check. Typically $50-$75 minimum, your goal is $500. Auto draft on paydays so you never have to see those funds.
- Call your CU and open a pledge or secured loan against your savings account for $500. They will freeze your $500 funds in your savings account and then apply $500 available funds to your savings account. Even with a very poor credit score your interest rate can be as low as 2.6% and a 12 month term. Trust me.
- Once the loan department sets you up, have them transfer you to credit card depart instantly. you will want to set up a secured credit card with that depart for the same amount as your loan, $500 in this case.
- Once your two new accounts show through your banking, it's time to have fun. Auto pay yopur new loan with your new secured credit card on your new account every month on its due date.
- Next, set up an autopay towards your new credit card for the full amount as it will only be around less than $50. Try not to use this card other than this purpose as much as possible.
- Now, everyone's heard of the shopping cart trick. There are pros and always cons. When you're rebuilding who cares about the AAoA (Average Age of Accounts) at this point. Follow these steps to www.shoppingcarttrick.com get ONLY the cards you would use for yourself, I do not recommend getting a bunch of useless cards. Make it count.
- Constantly view your credit report on creditkarma.com, creditsesame, credit.com, mint.com, and quizzle.com (there are a few more free ones out ther, just google them).
- If you have collections, charge offs, inaccurate information on your report DISPUTE DISPUTE DISPUTE, if you need sample letters PM me.
- The reason the shopping cards are best is because if you have a bunch of new credit at once in your rebuilding stage, you no longer have to worry about one little new account affecting your AAoA because all of your AAoA were opened up in the same time span.
- These steps have worked for me like crazy and helps getting approved for unsecured credit cards and lower auto interest rates.
- Please keep discrepencies to a minimum because everyone's situation is different, some people have that "do what you gotta do" mentality, I sure did. No regrets.
- Use credit responsibly, always pay on time and 10-20% utilization is great to practice.
