Rebuilding credit is easy when you know what to do Applying for multiple credit cards at one time is not the way to build credit when starting fresh or recovering from a foreclosure. In doing this, you rack up multiple hard inquires on your credit report, which sends red flags to all potential lenders. As a result, you are denied and those inquires will stay on your credit report for 2 years. Whether you are trying to build or rebuild credit, you must select one credit building method and pay your bills on time for a year before applying for additional credit. This will show the bank that you have demonstrated your credit worthiness.

1. 5 Proven Techniques to Help Rebuild Your Credit after Foreclosure
Rebuilding credit is easy when you know what to do
Applying for multiple credit cards at one time is not the way to build credit when starting fresh or
recovering from a foreclosure. In doing this, you rack up multiple hard inquires on your credit
report, which sends red flags to all potential lenders. As a result, you are denied and those
inquires will stay on your credit report for 2 years. Whether you are trying to build or rebuild
credit, you must select one credit building method and pay your bills on time for a year before
applying for additional credit. This will show the bank that you have demonstrated your credit
worthiness.
How long does it take to rebuild credit?
In this chapter. You need to display at least 1 year of on-time payments before major
bank cards, like American Express and Visa, take you seriously.
Can you tell me the various ways to build or rebuild my credit?
Yes. There are five ways to establish or restore your credit. You can dispute and remove
negative items from your credit report, obtain a secured credit card, apply for retail store cards,
use a Credit unions rebuild your credit loan and take out a Secured bank loan.
First technique-repair your credit
You want to get a copy of your credit report for review. Order your credit report using the
methods discussed in Chapter 1. Once you have the credit report, review it for accounts that do
not belong to you. If it’s not clean, then use the dispute methods in Chapter 2 on how to repair
your credit report. If there is no incorrect information on your report, it’s time to build or rebuild
credit.
Second technique-use a secured credit card?
This method is good if you are trying to rebuild or start a new credit file. Getting a secured credit
card and using it responsibly is an excellent way to build creditors’ trust in your ability to use
new credit, so that, eventually, you can get an unsecured card. With a secured credit card, the
companies require cardholders to secure their credit purchases by depositing a certain amount
of money as collateral. That way, if you don't pay your secured credit card, the bank can get
repaid by withdrawing the money you owe from the deposit you provided.
Third technique-retail store cards?
This method is good if you are building credit for the first time. Retail cards like those at Macy’s
and JCPenney are easier to get than a major credit card. The reason the retail cards are easier
to get is because they grant lower limits and the card is tied to merchandise in their store only.
Apply for a card and then make your payments on time for 6 months. Pull your credit report and
check your payment history.

2. Fourth technique-credit builder loan - credit union?
This method is good if you are building or rebuilding your credit files. You know how important it
is to have excellent credit. A credit builder loan is your key to establishing, or reestablishing,
your credit. Here’s how it works: the credit union loans you money that is deposited into a
certificate of deposit (CD). You make regular payments that are reported to the credit-reporting
agencies. Once the loan is paid off, you get the certificate of deposit and have a better credit
score. The benefits of this program are that you don’t have to give any money up front, the
credit union reports to all 3 credit bureaus, and you establish a small saving at the end of the
12-month installment period.
Fifth technique-apply for a secured bank loan?
This method is good if you are rebuilding or building credit for the first time. Save $500-$1000
and then, visit various banks with your credit report in hand, asking them whether they do
secure passbook loans based on your savings. Once they agree, ask the loan officer if there is
a prepayment penalty, what the interest rate is, and what credit bureaus they report to. Apply for
a 12-month passbook loan, then, with the loan from the first bank, go to another bank and open
a second passbook loan with a 12-month pay period. Then, wait 3 weeks and go to a third bank
and repeat the process with the loan from the second bank. Now you have 3 loans at 3 different
banks for a 12-month payment plan. Now, start making payments with the loan you received
from the last bank. After 6 months of on-time payments, check your credit report to make sure
the loans are being reported correctly. Congratulations, you have just established superior credit
with 3 bank installment loans.
If you want to get the best credit ever, get approved for your dream home, car and stop
collectors from harassing you on a daily bases, then it’s time to take action by signing up for you
free Self Credit Repair E-Class by Clicking Here Mark Clayborne is Amazon’s best-selling
author of “Hidden Credit Repair Secrets” and a credit repair expert with 10 years of experience
assisting consumers with credit related issues. He is also the radio host of the show “Who Else
Wants Better Credit” on blog talk radio every Tuesday at 7:30PM-PST.