Here is a list of miscellaneous other tips for rebuilding your credit:
- In a perfect world, you want to charge no more than 30% of the available credit on your credit cards. If the limit is only $300 or $500 though, that will be difficult to do, so keep it below 50% of the available credit.
- Use your credit cards every month and pay off all but $1 or $2 if you won’t be penalized for it.
- Pay off your utilities every month and on time, but it’s especially important to do so if they report your account to the credit bureaus.
- Keep in mind that many “buy here, pay here” automobile dealers don’t report to the credit bureaus, so only use them if you have no other option or make sure that the one you buy from does report your payment history. Your credit score would be better off if you kept your current automobile for another year and saved for a “down payment” during that time, and utilized the prior tip for reducing your balance to credit limit ratio.
- Keep in mind that credit inquiries reduce your credit score and that ding lasts for a minimum of 3 months, so even if you’re shopping around for a vehicle or mortgage don’t let every finance manager pull your credit report. Make your own copies and reuse the same one.