Bad Credit?

“Hi Gary. I’d like to buy a home. But the very little credit I have isn’t good. Any suggestions on how to improve my credit?”

***ANSWER:
Here are five suggestions anyone can use to rebuild credit:

Get a secured credit card-
Secured credit cards report your credit payment history to credit bureaus just like a regular credit card. They are “secured” by your money, which you deposit in a FDIC or NCUA insured bank account. Ask your favorite banker.

Get a department store card-
They’re easier to qualify for than a general bankcard. Be aware that they may charge a high interest rate.

Give yourself a loan-
Open a passbook savings account in a bank or credit union. Then take out a low-interest loan using the passbook as security. The bank will report your payment history to credit bureaus.

Get a credit report from all three bureaus-
Each may have different info. If you’re being turned down for credit, find out if the reason is valid. Many credit reports have errors. Dispute any inaccuracies you find.

Don’t apply for every card offer that comes your way-
Each one generates an inquiry in your file. Too many inquiries can hurt your credit.

Time is your best friend. As you keep adding positive information to your credit report over time, any negatives will first be diluted and then begin to recede in importance. They usually won’t drop off completely for seven years, but they become less important to future creditors evaluating your credit-worthiness.

Good luck!