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Managing Your Credit and Debt
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Reestablishing Credit
Managing Your Credit and Debt
- Introduction
- What's Your Credit Rating?
- Reasons for Being Denied Credit
- Using Your Credit Card Safely for Internet Purchases
- Reestablishing Credit
- Talk to Your Creditors
- Collection Agencies
- Credit Counseling
- Alternative Ways to Pay Off Your Debt
- Paying Your Debt to Uncle Sam
- Bankruptcy
Reestablishing Credit
Reestablishing credit can be tough to do if you have a poor credit history or have declared bankruptcy. The bankruptcy filing remains on your credit record for up to ten years, and creditors obviously shy away from people with a bankruptcy record or a bad credit history.
Here are some basic steps you can take to start the process of reestablishing your credit.
- When you've built up savings in your bank savings account, take a "passbook" loan. The account will be frozen for the amount that you have borrowed. Repay the loan on schedule and this will demonstrate your willingness to be responsible about your debt.
- Have a loan co-signed by a family member or friend. Remember, though, if you can't make the payments, he or she will be liable for the balance.
- Get a debit card, which looks and acts like a credit card, except that it takes money right out of your checking account. Some financial institutions will issue that to you as a "first step" on the way to a regular credit card.
- Get a department store charge card. These are generally much easier to get than Visa or MasterCard. But be sure to make your payments on time!
- DON'T pay a "credit agency" money to have your credit reestablished. They can charge high fees, and rarely do more for you than you can do for yourself.
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Investment and Insurance products are not products and services of Bank of Zachary. Content is informational only and is not FDIC insured.
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