Get a short-term loan today

Rebuilding Your Credit


Bad credit will limit your ability to get credit cards or a loan for a new house or new car. If you have bad credit, below are some tips for how to build credit and improve your credit score, which is important if you’re going to use online cash loans such as same day payday loans. Keep in mind that these techniques are not immediate fixes. Rebuilding your credit will take time, so be patient. The recommendations below will help speed up the rebuilding process.

Check your credit routinely. Treat it as a monthly check-up or simply add it to your to-do list when you pay your bills. Take a few minutes each month to review your credit scores, monitor your progress, and set your goals for the upcoming month. Learning how to build credit will come in handy when organizing future bills, payments and investments.

Your credit reports and scores are generated when they are requested. As soon as negative information is no longer reported or positive information is reported, your scores can change.

Pay attention to the obvious. When learning how to build credit most people tend to focus on larger items like judgments, charge-offs or other negative information. However, the personal information on your credit reports is also important so be sure to check for accuracy. An incorrect address or a misspelling of your name could indicate your credit information is getting mixed up with someone else’s. Check your personal information for errors since mistakes can happen.

Mark your calendar. The Fair Credit Reporting Act addresses how long negative information can remain on your credit reports. There are limits on how long negative information can be reported:

  • Late payments: 7 years from the date the payment was late
  • Collection accounts: 7.5 years from the date of delinquency on the original debt (leading up to collection)
  • Charge-offs: 7 years from the date charged off
  • Tax liens: 7 years after they are paid or satisfied
  • Judgments: 7 years from the date entered by the court if paid, possibly longer if unpaid
  • Repossession: 7 years from the date the repo occurred
  • Bankruptcy: 10 years from the date filed (Chapter 13 cases will be removed 7 years from the date of filing)
    Typically credit reporting agencies will automatically stop reporting negative information after the designated time period has passed. However, you should still check your credit reports 30 - 60 days after this negative information was supposed to have been removed from your reports to make sure it’s gone.

Watch out for credit report duplicates. Accounts that go unpaid can be sold from one collection agency to another. When that happens, the number of collection accounts and the amount owed can be inflated during that process. It may take time to identify which ones are legitimate, but when you do, you should dispute all of them except the most recent accounts as duplicates.

Try to bargain with debt collectors. Your credit scores will not be affected differently if you pay a collection account in full or settle the balance for less than the full amount. Many collection agencies are able to negotiate terms on the amount. If you do negotiate a deal, make sure to get it in writing. Paying a collection account won’t immediately change your scores. However, it will mean you can stop worrying about that debt and focus on other financial goals.

Remove your tax lien. If you pay or settle a tax debt that resulted in a tax lien on your credit reports, you may be able to get that lien removed completely from your reports. The same may apply if you enter into an installment agreement with the IRS. Find out if you qualify. If you do, your credit scores may improve significantly when the tax lien is removed.

Resume using credit. After running into credit problems, people tend to be afraid of jumping into the water and using credit again. While you certainly want to be cautious and avoid getting into trouble again, getting credit is essential to building your credit scores again. Recent, positive credit information can help improve your credit scores and can make a big difference as you fix your credit.

Use a secured card. Even with damaged credit, these cards should be easy to get because you provide a security deposit for the card. If you manage the account properly, you will get your money back when you close the account. Make sure to choose a card that is reported to all three major credit-reporting agencies so that your positive usage will help establish a new positive credit reference.

Don’t max out a credit card. Try not to use more than 10 – 25% of the available credit on an individual card. Using higher amounts of your available credit, even though you may pay it all off, may have a negative effect on your credit score.

Immediately dispute mistakes. If you find mistakes on any of your credit reports, you should dispute them right away. If it’s a serious one, you should send a letter rather than filing an online dispute so that you have more proof. Also, since the 3 major credit-reporting agencies don’t share information with each other, you’ll need to challenge the error with each of them individually.

Proceed with caution. When trying to rebuild your credit, one late payment can result in a big drop in your credit scores. Set up auto-payments for your bills or set up automatic reminders for each payment to be emailed / texted to you so you don’t forget a bill.

Please visit the following ConnectFinance resources for other information and tips on how to build credit and reduce your debt.

A "personal loan" is a financial product that provides consumers with a low amount, short-term cash loan. These loans are typically 2-3 weeks in duration and are not based on the borrower’s credit. Using a simple application, like the one on this website, personal loans provide borrowers with a financial option for quickly acquiring the money they need to cover small unexpected expenses.

Learn more

Installment loans are very similar to online personal cash loans in that it's a lending product that enables consumers to quickly acquire money needed to pay for immediate, and often, unexpected expenses. However, an installment loan is repaid over time based upon a set number of scheduled payments, instead of one lump sum like a personal cash loan.

Learn more

Auto title loans, also referred to as car title loans or cash title loans, are a type of secured loan where the borrower can use their vehicle title as collateral. Borrowers must allow a lender to place a lien on their car title, and temporarily surrender the hard copy of their vehicle title, in exchange for the loan.

Learn more

A line of credit loan is an online cash loan where credit is extended to individuals to be used as needed over a period of time. It uses a debit card to provide the credit, which the consumer uses for purchases.

Learn more

A line of credit loan is an online cash loan where credit is extended to individuals to be used as needed over a period of time. It uses a debit card to provide the credit, which the consumer uses for purchases.

Learn more

We'll Connect You With The Loan You Need

When you need to borrow money fast, ConnectFinance can help you get the cash you need in as little as the next business day. Start by entering your information above to see how much money you’re approved to receive. The process is simple, only takes a few minutes and is completely secure.

ConnectFinance is a free lender matching service that will connect you with an approved lender that can provide the cash loan you need, deposited directly into your bank account. You can be approved for a loan in just a few minutes!

 

How It Works

1. Fill out
a short form

2. Determine the
loan type that best fits you

3. Get the
money you need

 

ConnectFinance can help you get the money you need in a just a few simple steps.
Our network of trusted and approved lenders are ready to provide the money you need today.

*THE OPERATOR OF THIS WEB SITE IS NOT A LENDER, does not broker loans to lenders and does not make short term cash loans or credit decisions. This Web Site does not constitute an offer or solicitation to lend. This site will submit the information you provide to a lender. Providing your information on this Web Site does not guarantee that you will be approved for a short term cash loan. The operator of this Web Site is not an agent, representative or broker of any lender and does not endorse or charge you for any service or product. Not all lenders can provide up to $2,500. Cash transfer times may vary between lenders and may depend on your individual financial institution. In some circumstances faxing may be required. This service is not available in all states, and the states serviced by this Web Site may change from time to time and without notice. For details, questions or concerns regarding your short term cash loan, please contact your lender directly. Short term cash loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a short term cash loan based upon lender requirements. This service is not available in New York or to New York borrowers due to interest rate limits under New York law.

Copyright © 2019 ConnectFinance | Privacy Policy | Terms of Use