Re-pay your debts… and establish good credit!

There are several things you can do to help you re-establish good credit.

The obvious course of action is to re-pay your debts. That’s a given. But at the same time… you should also be thinking about restructuring your lifestyle.

This was probably the hardest part for me because it was hard trying to change my habits. But I knew I had to do what it takes to help be get my good credit back. So I first started with setting a budget and sticking to it. Some of the things I included in my budget were:

a) Rent
b)  Utilities like Gas, Electric.
c) Some other things I heard that help is keeping your same residency and job
d) Maintaining a checking account and savings account

The other thing I did is I cut-out all of my eating out. I used to always eat out only because I didn’t like to cook. But I noticed that my biggest expense was paying for fast-food every day for lunch and dinner. It was EXPENSIVE!

So instead… I trained myself to go to the super market and by groceries in order to cook food at home. By doing that… I instantly cut my expenses down by more than half!

Can you believe that? It’s true… that’s how much I was spending on buying food everyday instead of just cooking at home.

After you re-pay all your debts… then the next step is to get a new credit card and begin to build a good credit history. For me, it was still hard for me to get a credit card. So instead… what I did was go to my local bank and applied for a ‘Secured Credit Card’.

You can find more about getting a secured credit card here:

http://www.bankrate.com/finance/credit-cards/10-questions-before-getting-a-secured-credit-card-1.aspx

Essentially… what I had to do is put up some collateral to get my card. So in my case… I gave the bank $300 dollars up from for a credit card that had a $300 dollar limit. Then, I made sure to use the credit card to only pay for bare essentials like gas for my car and also groceries from the market.

Then… I made sure to pay off my credit card each and every month just to help me build some better credit. When you use your card responsibly like this… and you don’t go overboard… and you pay off the balance each month… this will help you credit over time.

Again… there are no quick fixes. You can’t fix or repair your credit overnight. It takes time, patience, discipline, and consistency. But if you stick to the plan I’ve laid out for you here… you’ll be on your way to moving closer to establishing good credit.

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