A Strategy for Success

(The Following content is taken from Chapter 8 of The Free Credit Repair Kit )

            You may feel like you’re stuck without any kind of credit.  It may be difficult for you to reserve a hotel room or rental car without it.  It may also put you further away from your dream of owning a home or a new car.

            However, if you have some patience, you can rebuild your credit gradually and get into position for the types of credit you need.

            In the early stages of rebuilding, you shouldn’t apply for too much credit.  This puts negative marks on your credit.

            Initially, start putting money in a savings account.  When you have a nest egg of somewhere near $1000, you’ll be in a better position to apply for a loan.  You’ll also have a back up for emergencies.

            Whatever credit accounts you do have, make sure you’re able to manage them.  Make your payments on time and do your best to keep the balances low.  Remember that when your credit is maxed out, you lower your credit score.

            If you’re unable to get a traditional credit card for emergencies and reservations, you should try to get a secured credit card.  By making a deposit of collateral, the bank is safe in extending you some credit.

            After you’ve continued to make payments on time with your secured credit, you’ll be able to move to an unsecured card.  This will continue to increase your credit score.