How to rebuild your credit score after credit disaster

You need to add positive stuff to your credit profile for improving your score. The first step is to get some credit or charge cards if you don’t have any. If you still have some old accounts to use, that’s the best.

Apply for a bank secured credit card

Secure card gives you credit limit that is usually equal to the deposits in the banks savings account. It’s better to get secured card from bank so that account information will be relayed to three credit bureaus. Mostly there will be a annual member fee and it should be around $30. After a year you will be eligible to covert to card into a regular credit card.

Get GAS and department store card

It’s comparatively easy to get a GAS or department store card. You should try to get one of these cards after using the secure credit card for a few months. Don’t try too hard as it might hurt your score if you apply too many cards within a short time period

Avail an installment loan

If it’s possible try to get a small personal loan from bank or credit union. Usually it’s little easier to get the approval for loan though credit unions. If you can’t get approval on your own, you can try to get a co-signer to get the loan.

Remember to use your credit well. Avoid any mistakes which have negative impact to your score.