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Re-Establishing Credit

Unfortunately, there are no quick fixes when it comes to reestablishing credit after experiencing credit problems. Customers with previous credit problems will usually need a satisfactory payment record for 18-36 months before being considered by other lenders. However, it could be a longer or shorter timer period depending on the seriousness of the credit problems.

There are some things you can do to start to reestablish credit. Make sure your credit file is accurate by obtaining credit reports from all three credit bureaus. Start to build a non-traditional credit history. Save cancelled checks for payments that you make that are not usually reported to the credit bureaus and send copies to creditors when applying for credit. When applying for a loan, provide collateral and make a larger down payment than required.

While there is no overnight solution to rebuilding credit, there are things you can do to take the first step to improve your credit record.