1) Credit report clean-up, which may be a time-consuming process if you decide to do it yourself;
2) Continuing to add information to your credit history impacts it in a positive way (on-time payments, paying off credit, card debt, etc).
It is critical that you follow both of these steps, since they are interrelated – for instance, no matter how many positive accounts you manage to get on your credit report, they will not negate the negative accounts that will continue to keep your credit score low.
Once you have resolved your debt issues through either debt counseling or bankruptcy, you can begin the process of rebuilding your credit. As mentioned earlier, you should start by reviewing your credit reports from all three credit reporting agencies (Equifax, TransUnion, & Experian). You may pull your credit reports for free at www.Annualcreditreport.com and review them in great detail. Highlight all the negative marks or accounts that have been discharged in the bankruptcy proceedings or debt counseling – and therefore should no longer show up on your credit report. Next, contact an experienced credit repair agency that is familiar with all the federal laws and procedures related to credit repair. We recommend www.LexingtonLaw.com, which has been a wonderful resource for our visitors.
As mentioned above, once you clean up your credit report, the next step is to add positive lines of credit to your credit portfolio. There are plenty of credit cards available for consumers wanting to re-build their credit history, and here is a good resource to research a credit card that best suit your needs: www.creditcards.com. We like this website since it provides a wide range of credit card options to rebuild your credit history. However, be careful when selecting a credit card targeted for consumers with bad credit, since there are plenty of credit card companies that take advantage of consumers with poor credit by offering them cards with high interest rates, membership fees, high deposits, and outrageous late fees. And finally (and we cannot stress this enough) – make sure to pay all of your new credit cards on time, and ideally in full, each month. Taking these above steps combined with some patience will have you well on your way to rebuilding your credit history!