There is no don’t need to hire a professional to help repair your credit. You can do it on your own by simply following these tips.
1. Apply for a bankruptcy discharge. If you have never been previously bankrupt, you may qualify for an automatic discharge from bankruptcy in nine months.
2. Obtain a copy of your credit report. Check if they are any errors and correct if necessary by notifying the credit bureau right away.
3. Get a secure credit card. Use your savings to place a deposit with the credit card company. You will be given a credit card with a similar credit limit. The credit report will not be able differentiate between a secure credit card and a normal credit card.
4. Open a savings account. It is a well known fact that banks lend money to individuals who have it and not to those who desperately need it. To be able to borrow again, you will need to prove to the banks that you know how to handle money. Having savings is the best way to do this.
5. Get a RRSP. Use your savings to purchase RRSP’s. If you invest $1,000 in an RRSP, the bank will probably be willing to lend you another $1,000 to contribute to your RRSP. That $2,000 you contribute will generate a refund at tax time that will be almost enough to pay off your loan. Your credit report now shows a paid off loan, which looks great on your credit report, and you have $2,000 invested in an RRSP.
6. Pay bills on time. Make timely payments on all of your current accounts. Get current on accounts that are past due.
7. Reduce maxed out account. Having maxed out credit cards costs credit score points. Bring maxed out credit cards below the credit limit, then continue working to pay the balances off completely.