How to Rebuild Credit With No Security Deposits

Credit issues can influence your ability to purchase a vehicle, a home and get a job. Even if your credit score is suffering, there are several changes that will help rebuild credit without a security deposit. Using the credit you have to build a positive history and looking for possible credit reporting errors can help rebuild your credit over time.

Instructions

1

Pay existing bills on time. This might seem like common sense, but according to Entrepreneur website, it's one of the simplest ways to rebuild credit. Consider setting up automatic payments to your creditors with your financial institution. This will prevent last-minute scrambling and oversights that could further damage credit.

2

Keep credit balances low. If you have credit cards, keep your balances low. A balance that exceeds 35 percent or more of the credit limit can pull down your credit score. Also, paying down large balances will show your ability to reduce your overall balance, which will help rebuild your credit.

3

Take care of collection issues. Creditors want to settle your debt. Contact your creditor and negotiate a payment plan that fits your budget. As a result, the creditor will start making positive reports to the credit bureau, which will rebuild credit over time.

4

Avoid closing old accounts. It might be tempting to close all unused account. According to Entrepreneur Magazine, however, this might aversively affect your credit rating.

5

Clean up your credit report. Inaccurate information on your credit report could be hurting your credit (without your knowledge). You are entitled to a free credit report from all three credit bureaus--Equifax, Experian and TransUnion--every 12 months. Review it carefully and report inaccuracies, such as late payments and accounts that don't belong to you, to the credit reporting bureaus. Make sure to include supporting documentation, such as account statements or a police report in cases of fraud.