Chris O'Shea
Be Patient With the Process
The first thing to know about rebuilding your credit is that the process could take months or even years. The time it will take to repair your credit depends on the severity of the late payments.
Contact Your Card Provider
Contact your credit card provider and explain your financial situation to them. Ask about any available financial assistance plans that you could use. Chances are they’ll be willing to work with you.
Tighten Up Your Budget
Review your budget and make cuts where you can. Use those extra funds to make your late payments and to stay on top of future payments.
Stay Current
This might sound obvious, but a key to rebuilding your credit after missing payments is to not miss any future payments. Be diligent about never being late again. Consider setting up an automatic minimum payment if you are able.
Keep Utilization in Mind
Another big factor in your credit score is your utilization. This is the percentage of your available credit that you’re using out of total credit. Keep the percentage as low as possible (aim not to exceed 30%) and slowly (but surely) your credit score will begin to improve.
Monitor Your Progress
While you’re busy making timely payments, remember to closely monitor your credit report. Make sure there are no errors. You don’t want incorrect info to keep your credit score down.
Jean Chatzky
