How to re-open your credit after you have made a hit

Whether it be a foreclosure home, job loss, excellent medical billing or a dormant business, sometimes our credit is subtly lost because life happens.

Sometimes it does not even need to be a big event in life to your credit for the tank. Sometimes it's simply a matter of not knowing how to use credit properly and end up with your credit card.

The good news is that credit scores are finally coming back. This is not a permanent thing. However, you need to know what to do to ensure that your bad credit is just a temporary hurdle instead of a lifetime jail sentence.

First: Understand what a credit account is and how it works.

The first step in rebuilding your credit after you've made a visit is to understand how the credit score actually works. By understanding your credit score and how it is calculated, you have a better chance of understanding how to rebuild it.

Payment History (35%)

Current debt (30%)

Duration as a consumer (15%)

New Credit (10 percent)

Current credit (10 percent)

This can provide you with a procedure for reopening your credit account. For example, if you are rebuilding the old way, now you will understand to pay off your debt as quickly as possible. That will make the current debt ratio take up a large part of your score.

Have to use your credit account.

I know this sounds crazy. Listen to me.

To improve your credit score, you must actually use credit. Note, this does not mean going into debt and staying there. It means using credit wisely.

For example, you may still be able to qualify for a new credit card so you can get a credit card out, use it, and make a full payment each month.

If your score is really extremely low and you can not even get your credit card, try a pre-approved credit card. This will require you to deposit so you can qualify.

Just be aware that you will find a guarantee card not accompanied by a cost. You will also want to make sure it is reported as "unsafe" for the three major credit bureaus. Add a score if the card allows you to register an unsafe version without canceling your account.

Find an extra job.

If your credit is being abused because you owe a lot of money, you probably will be most interested in finding more income so you can pay off much faster.

There is no shortage of opportunities to earn extra money these days. From free online driving to Uber, anyone who wants to make extra money is welcome.

Depending on how bad your situation is, you may need to consider bankruptcy or credit counseling. Although we do not mention these two topics in this article, if you feel your situation cannot be helped with the tips mentioned above, please contact a lawyer or private person. Credit counseling to get two cents.

How to re-open your credit after you have made a hit

Pay off your debt

Paying back the amount you owe will reduce your debt (obviously), increase the amount of credit available to you, and create a positive history over time. That's the slowest way to do it, but you have to do it.