Re-establishing your credit worthiness

Many face bad credit problems and get their credit messed up. This should not be a distraction to re-establish your credit worthiness again. It will require will power and development of good financial discipline. Keep in mind, there are no quick fixes and it takes time.

Open new accounts and pay them on time. Repaying proves that you are disciplined. Instead of one or two credit lines and carrying a balance more than 50 percent of the credit limit may not help. Multiple cards in smaller amounts could affect positively to re-establish credit worthiness. After a big financial fall, you may find it difficult to get credit again. One way to re-establish is to get help from a friend or relative to co-sign to get store and other credit. If you are unable to obtain credit on your own credit history, you may be able to qualify by securing credit. A bank may issue a credit card with secured savings account. Instead of using your cards heavily for day to day purchases, consider using it in moderation. Also keep the balance as low as possible to help you re-establish your credit worthiness and get a higher FICO score. Check your progress using free credit reports that are offered by many.