You might look at your credit report and think that there’s no way to repair the damage on it, but there’s good news: you really can. Nothing lasts forever in the world of finance — not even bankruptcy. There will come a time where you get a clean start. Do you know how to make the best of it, or are you going to leave opportunities on the table because you’re scared of rejection?
The good news that you have to absorb is simple: time really does heal everything, including your credit!
Let’s go through a few examples:
If you have a bankruptcy on your credit report right now, then you should know that it w ill fall off your credit report after 10 years from the date of discharge. That means that it won’t last on your credit report forever, but it is a reminder that you will need to make sure that you’re a lot more careful in the future with your finances.
Other things, like liens and delinquencies and judgments last for 7 years, but this can vary on your state as well. You will need to just wait it out.
In order to move on from the negative things, you have to add something positive to the discussion. You don’t want to just sit and do nothing to improve your credit. You just need to start with something small, like a secured credit card. Now this means that you will need to put a little money into fixing your credit, but that doesn’t mean that the money is lost forever. Think about the last time that you signed up for cell phone service. You had to most likely put down a deposit, which was returned to you after about a year. This is the same case with secured credit cards — you might have to give up the money to begin with, but that doesn’t mean that the money is lost forever. In fact, if you use the credit cards wisely, you can not only have your deposit money returned to you, but you can also have your limit raised. What’s better than that? You will have it converted to an unsecured credit card, which is the best type of all credit cards. Now, that’s not to say that secured credit cards are bad. However, there is something powerful about being able to say that only your word is keeping your credit line open, rather than having to give up money just to get a credit card. In addition, the fees for unsecured credit cards are less, since the credit card company trusts that you will pay the money back.
Overall, it will take some time before your credit score gets better. You will need to also make sure that you’re mixing things up. You need to think about getting installment loans and other types of revolving credit as well. If you wanted to go with a store credit card, you should probably be able to do this as well. The hard work you do in rebuilding your credit is definitely wroth it when you think about all of the rewards, so don’t be afraid to get started today!