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- Get a job (even part-time) and
establish a steady work record.
- Order a copy of your credit report
from each of the three credit bureaus.
- Correct and update incorrect information
on your credit report and submit a 100-word statement to tell your side
of the story if you had a problem.
- Get rid of all but one or two
of your credit cards after paying off your outstanding balances. Prospective
creditors will see that you intend to use credit more carefully in the
future.
- Open a savings account and make
systematic deposits.
- Pay all bills on time.
- Open a checking account. Don't
go below the minimum balance and don't bounce any checks. This will
show that you can manage your finances.
- Open a secured credit card account
if you cannot obtain a regular card (for a list, send $4 to Bankcard
Holders of America, 324 Branch Dr., Salem, VA 24133).
- Obtain a small loan from your
bank or credit union and pay it back promptly or ahead of time. Check
first to learn if the business reports transactions to a credit bureau;
not all do.
- Apply for a credit card at a local
store or bank (don't apply for too many at one time).
It may take from one year to 18 months of paying your bills on time to reestablish
a credit rating that shows that you now have control of your spending and
can be considered a good credit risk. (If you have filed for bankruptcy
this process can take longer, but the previous steps should be followed
nonetheless.)
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