How to Rebuild a Credit History on Your Own

Living with a low credit score reduces your chances of acquiring a mortgage loan and other types of financing. There are numerous ways to rebuild or establish your credit history. And while some people choose to improve their FICO score with credit or debt management companies, it's possible to raise a low score on your own. The key is identifying factors that reduce your score, and making smarter decisions.

Instructions

1

Start a new line of credit. Rebuild your credit history by applying for a new line of credit. Open a secured credit card account with your bank, or consider applying for an auto loan to help boost your low score.

2

Be aware of your due dates. Open statements upon arrival and record due dates on a calender. Pay bills several days before their due date to avoid a late payment, or consider signing up for online bill pay.

3

Maintain self-control. Use credit cards for emergencies only to avoid incurring a large debt.

4

Regularly pay off balances. Get into a routine of paying off your credit card balance every month to keep your debts low.

5

Avoid judgments and collection accounts. Failure to make payments on your credit accounts can result in collection accounts and credit judgments. These remarks remain on credit reports for seven years. Negotiate payment arrangements with creditors to avoid negative accounts.

6

Monitor your report. Keep track of your credit report and score by ordering your report annually from websites such as Annual Credit Report. Check for errors and dispute inaccuracies.