Not paying your debts on time is the major reason many people end up with bad credit. If you are in this situation, make arrangements with all of your current creditors to pay off your current debt. Moving forward, all your payments should be made on time too. However, this alone will not build a good credit score, it’ll simply undo some damage to your credit score.
You should get a credit card you can use at least once every month. It is not just that but rather you should pay it off in full each month to make your credit score go up quickly. Bad credit doesn’t prevent anyone from getting a credit card, even in this economy. Additionally, you don’t even have to stoop down to cards with annual fees.
A secured credit card issued by your bank allows you to rebuild your credit score quickly, if you use it responsibly. Use it to make a small purchase each month and pay it in full at the end of the month. Doing this for a few months and developing good debt payment habits will increase your credit score quickly. This should happen in 6 to 9 months of using the secured credit card responsibly.
It is an important part of rebuilding credit scores. However, you have to keep up the good habits when using the credit card to avoid damaging your credit report again. The good debt payment and money management habits will prepare you to be responsible as well when you upgrade to a regular unsecured credit card.