Tips For Rebuilding Your Credit

If you have a less than stellar credit score, the reality of the situation is that your current score does not have to hold you down forever. The good thing about credit scores is that they can be fixed. While the change in score will not happen overnight, there are certain things you can do to help improve it as soon as possible. In order to help you hit the ground running and work on improving your credit score as quickly as possible, here are four tips to help.

1. Start Off By Getting New Credit: If your credit history has left you with no credit cards, the best thing to do is establish new credit. Secured credit cards are a great option if you cannot get approved for a regular card. They are just like an unsecured credit card except that they require a small deposit before approval. After using a secured credit card for about six months with a solid payment history, you can begin to work toward approval of an unsecured card.

2. Build Good Credit Habits: Actions such as charging more than you can afford to pay off, paying only the minimum balance, and spending up to the limit are often part of the reason for a low credit score. If you are serious about improving your score, it is a good idea to establish good habits such as paying off your balance in full each month and only spending about 50% of your credit limit.

3. Pay Everything On Time: From credit cards to utility bills, paying everything on time is a good financial habit to get into. By paying all of your bills on time, you can be sure that no bills get turned over to collections and that your credit score continues to improve as a result.

4. Avoid Applying for Too Much Credit: When trying to improve a credit score, it is a good idea to avoid applying for too many credit cards. Each time a creditor pulls your credit report, your score takes a hit and as such it is a wise idea to only have one or two cards.

A low or below average credit score can be nothing more than a temporary setback if you truly desire to improve your score. By following these four suggestions and maintaining good financial habits, your credit score will begin to improve and the shackles of a low credit score will begin to disappear. Hopefully, by putting the advice mentioned here into action, you can begin to rebuild your score and before you know it, be the type of loan candidate creditors are looking for.

Citizens Savings & Loan Corporation is one of Tennessee’s oldest consumer finance companies with offices in Bristol, Chattanooga, Cleveland, Dayton, East Ridge, Jasper, Knoxville, Johnson City, and Murfreesboro. Our products range from bill consolidation loans to personal loans. For more information about how we can help, please visit our website at