NASHVILLE, TN (WSMV) – Credit is crucial when it comes to renting an apartment or, in some cases, finding a job.
If you have bad credit, there are steps you can take now to rebuild your score.
What a lot of people don’t realize: To build your credit, you need to get credit. But how do you get credit if you have bad credit?
Step 1: Open a bank account. If you take out small loans and make monthly payments on time, your score should improve over time.
Then apply for what is called a secured credit card, which means that you have backed the card with money.
The next one is risky. You can also ask a family member with good credit to add you to their credit card, but you had better pay it off because otherwise you will both suffer an impact on your credit score.
If you have a debt that is in the process of being collected, try to negotiate a settlement and pay it off.
A credit repair business might sound tempting, but experts say don’t.
Right now, the ball is in your court with free weekly credit reports through April 2022. By law, credit bureaus have 30 days to respond to a request.
If you are using Credit Karma to check your score, consider using something else. The free credit service checks your scores but does not use the three credit bureaus or your FICO score in their calculation.
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