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Best Way To Rebuild Bad Credit

What is the best way to rebuild bad credit? - John

Obviously you'll want to start with paying your bills on time and putting away the credit cards. And it matters. If you have a poor credit score - we're talking something below 620 - you'll face higher-cost loans, more expensive insurance, and possibly even a little discrimination in the job search.

If you're credit problems simply stem from late bill payments - maybe you're forgetful or a procrastinator - automate as much of your bill paying online as possible. That will keep you from missing payments.

However, if you can't cover your monthly bills and use credit cards to make up the difference, it's time to do some soul searching.

Get together your bills and look at your income with a new eye. Is housing just a third of your income or is it more? How much are you spending eating out? These are two items that people typically overspend on.

Put together a budget and try to stick to it. No matter what the source of your money woes are, it makes sense to look at credit reports to make sure that your credit score isn't suffering from bad information.

Check the account numbers. Are they yours? Are you identified correctly? If the information is incorrect, you can contest it by writing the credit rating agency directly.    See Bad credit
 
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