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Step 1
Get new credit. If you had bad credit in the past, you may find it difficult to open new accounts, especially if these have gone into collections. Look for store or gas cards with low credit limits. You could look into secured credit with a co-signature. Once you start with these small pieces of credit, use them wisely. You will slowly start to see your score rise.
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Step 2
Change your credit habits. If you return to your old ways of spending your going to be right back where you were before. Charge small amounts and pay the balances on time. This will slowly start the credit repair process.
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Step 3
Beware of predatory lenders. Many of these companies target those that have had finance problems in the past. They charge high interest rates and fees. Before you know it you have huge payments that you cannot make. Until you learn to control your spending, beware of any company wanting to loan you large amounts of money.
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Step 4
Make more than your minimum payment. This decreases your debt ratio that helps to make up your credit score. It also shows that you are responsible and intend to pay the money back. Finally, it will help clear that balance sooner.
