The current economic situation has put many people in the position to have to rebuild credit.

Foreclosures, bankruptcies, and inability to repay existing debt are currently some of the main contributors to needing to rebuild credit.

Following are three ways in which you can start on the path to rebuild credit:

1. Talk to the Debt Holder

It is surprising how working with those you owe money to can help you. In many cases, debtors will work with you to keep your account in good standing and rebuild credit.

All they really want is for you to communicate with them. Ask for what you want, as long as it is reasonable. You can’t get what you want without asking and without being able to compromise.

Ask for validation of your debt and if it can be validated and is within the bounds of lawful collection practices, ask what the company is willing to do to help you to repay your debt.

rebuild creditProof of regular and on time payments can help rebuild credit and help your credit score.

2. Obtain Lines of Credit

Take heed on how often you are applying for lines of credit as this will lower your score if done too often. If you are in a poor credit situation, you are setting yourself up for failure if you are applying for traditional lines of credit.

If you need to rebuild credit or your credit is in a place that it needs a lot of work, look at nontraditional means of credit. There are companies that will lend to you, however you must be diligent in your repayment so as to not end up in the same situation you are in today.

Research companies that provide credit to those with poor credit history as well as talk to your banking institution to see what they can do to help. Obtaining new lines of credit that you repay on time will increase your credit score and rebuild credit, as long as you are not taking advantage of the situation.

3. Be Diligent

When you are going through the process of to rebuild credit, you must be diligent.

You must repay each and every debt that you are responsible for, on time, each and every month. Your credit score is not very understanding to anything less than perfection.

Make sure that you can pay your debts and do it on time. Do not get in over your head as this will drag your credit score down until such time as you are able to get ahead and prove yourself.

Creditors are looking at how you conduct your financial business and the only way they can  is to look at your credit history to see how you have behaved in the past.

Improving your credit can be a long, drawn out process. With hard work, you can repair the damage that has been done and rebuild credit.

You may need to be creative in the way that you rebuild credit, however the hard work you put in now will pay off in the future.

Amie Sitter-Jones

Amie Sitter-Jones writer and consultant who writes for adverse credit cards to help others to rebuild their credit.


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