Is it possible to rebuild your credit after you’ve damaged it? Absolutely! I did it! If you do the right things and are consistent, you can definitely fix your mistakes and restore your financial reputation.

Check your credit reports. Experian, Equifax, and Transunion now offer free weekly online credit reports. All you need to do is go to AnnualCreditReport.com.

Click the button to Request your free credit reports. Follow the instructions for each of the 3 reporting agencies. If you see anything on the reports that is incorrect, dispute the mistakes. When errors are removed, scores will rise quickly.

If you have any missed payments, catch them up. Once you’re right side up with the payments, ask for what’s called a goodwill adjustment to erase the late marks. Remember, your payment history is the largest part of your credit score so removing bad stuff will help. If you forget to make payments, put them on automatic payments.

If you’re using a lot of credit on your credit cards, pay the balance(s) down, and/or ask that your credit limits be increased. Spreading your balances across multiple cards to lower your usage percentage is not something I would recommend. You want to keep your balances under 30% of your available credit limits. But, under 10% is highly recommended.

If you don’t have a credit card, consider a secured card. This is a card where you front-load money onto it and that is your credit limit. It’s just like a credit card but you’ve basically pre-paid the card up front. Become an authorized user on someone else’s credit card. That will piggy-back you onto their responsible credit. Or, you might consider what’s called a credit builder loan. I will discuss this loan in a separate posting.

Don’t close older credit cards if you can avoid it. Credit age does affect your credit scores.  The longer your credit history, the better. And, if you need new credit, only apply when needed. Too many inquiries in a short timeframe will hurt your scores.

Moral of the story:

Yes, it’s possible to rebuild your credit. Just follow the suggestions I have outlined for you. Remember, it takes time and isn’t a quick fix.