How to Rebuild and Re-Establish Credit

If you’ve been struggling with bad credit, practice these strategies to reestablish your credit and free yourself from the stresses that come with low credit scores:

Pay Your Bills On Time

While this may seem obvious, make an extra effort to establish the habit of paying bills on or, preferably, before the due date. Payment history is the factor that has the largest impact on your score. Over time, consistent timeliness will reestablish your credit.

Minimize Credit Card Balances

Your credit card balances makeup the second largest portion of your credit score. Keep balances below 50% of the limit, preferably 30% or less, on each card to work toward reestablishing credit.

Scale Back on Your Borrowing

If you are struggling to meet your payments, make whatever lifestyle changes you can to minimize borrowed money so that you have less to pay back.

Don’t Apply for too Many Cards or Loans

If you apply for multiple credit cards or loans in a short period of time, your credit score will suffer. Keep these applications few and far between.

Use Loans Wisely

Taking out a bill consolidation loan and using the money to pay off various debts can improve your credit and simultaneously consolidate all of your debts into one payment. Making timely payments on this loan will reestablish your credit over time.

Ask a Co-Signer for Help

Have someone co-sign a small manageable loan on which you can make regular above-the-minimum payments. This will go a long way in reestablishing credit.

Be Patient

The process of reestablishing credit takes time and patience, so don’t expect a quick result. If you apply these strategies, however, you will see improvement over time.

Citizens can help!

Our loan advisors at Citizens Savings & Loan are here to help you get back on your feet. Contact us today!

If you would like to learn more about the process of obtaining a personal loan from Citizens Savings & Loan, or if you would like to learn more about other types of loans we provide, we encourage you to contact us today or stop by any of our convenient locations. You can also get the process of applying for a loan started now, simply fill out our online application form and a friendly Citizens representative will contact you!