How can I rebuild my credit ? Many people with very low credit scores ask this question and don’t know where to start to rebuild their credit score with a bad credit history.

Here are the 5 steps to follow to achieve it efficiently and without wasting time.

Pay your bills on time

Before thinking about recovering points on your credit score, you must stop losing points, especially by paying your bills on time. Make sure you always pay your bills and card statements on time to avoid late payments. Any delay will immediately drop your credit score and it will then take you several months to recover the lost points.

Avoid writing bad checks

In addition to the fees and possible legal consequences they can cause, bad checks can double your credit rating. In fact, not only does your bad check appear on your credit report, but if it was also used to pay off a debt, the incident will also appear on the report and will affect your score.

Refrain from making new loan requests

The applications that make it possible to apply for a loan affect the credit rating, even though no action is taken. If you are looking to rebuild your credit, it is therefore necessary that you avoid filling out applications for loans, especially since multiple loan applications are viewed by financial institutions as a lack of stability in the business. your situation and as a sign of the difficulties you are having in obtaining a loan.

Limit the use of your credit cards

Using your credit cards can affect your score, but it can also help improve it. In fact, on the one hand, if you use your cards to the maximum authorized limit, this is interpreted by financial institutions as an inability to limit your use of credit; in other words, your management is bad.

On the other hand, if you regularly pay your monthly payments, you show that you are a good payer. And if in addition you pay more than the minimum required and limit the use of your card to half the authorized amount, you earn points, because you are also considered a good manager.

Take a secured credit card

In addition to keeping a low profile, which helps rebuild your credit rating over a long period of time, you can speed up your points recovery by using a secure credit card. People who do not have or no longer have access to credit, particularly following payment defaults, can indeed obtain a personal loan, a line of credit or a so-called secured credit card by paying a guaranteed deposit of the same amount. to the financial institution. This approach allows you to be able to use a credit card and thus earn points, on condition that you use it wisely, that is to say use the card within the limit of half of the limit used and always pay your bills. on time. After one year of uneventful use,

Rebuilding your credit requires patience and flawless management. However, if you take these steps seriously, you will be able to improve your credit score faster and even get a mortgage over time.