4 steps to help you rebuild your credit

Getting over a financial setback and rebuilding your credit doesn’t have to be challenging. Here are four steps you can take to rebuild your credit.

Get a copy of your credit report
Visit www.annualcreditreport.com to order a free copy of your credit report.  Plus, you can access one free copy of your credit report from each of the three credit reporting agencies (Equifax, Experian and TransUnion). This way you can check your history three times a year at no cost. Once you have the report in hand, look it over and highlight the areas that need some work.

Look over your budget
You’ll want to see if you have enough funds to pay off, or bring current, delinquent or charged-off accounts. You may need to make contact with creditors to discuss your situation in detail. Let them know what your intentions are.

Get specific
Be specific with dates, amounts and financial commitments. This way both you and your creditor(s) are clear on what’s expected. Then, follow through and make the payments as agreed. This is the most crucial step toward improving your credit rating.

Write a statement
Lastly, consider placing a 100-word statement in your file. This should explain any extenuating circumstances. This way, each time your report gets reviewed, the creditor may consider the events that led to your situation. It may make a difference in the credit request being granted or denied.

To rebuild your credit, start where you are. Over time, the positive history will carry more and more weight.

Article provided by Local Government Federal Credit Union.

The advice provided is for informational purposes only. Contact a financial advisor for additional guidance.