Rebuilding Your Credit History

Building Credit Any individual who has suffered from severe financial hardship will find that one of the things that has been affected is his or her credit score
and credit history. Whether the hardship was a bankruptcy, a foreclosure, or repossession, you can rebuild your credit history and score.

One of the best things that a person can do when attempting to rebuild their credit history is to view the process as if he or she had no credit problems in the past. Think of the situation as if you had no credit history at all and are starting fresh.

You will have to understand how credit works to rebuild a solid history. Your credit score, which ranges from 300 to 850, is calculated using a formula that produces a number. This number tells others how likely you are to pay your bills.
The score is calculated based upon your payment history, outstanding debt, credit account history, the types of credit you have, and recent credit inquiries.

Those with higher scores tend to pay all of their bills on time, have lower amounts of outstanding debt, and an established credit history. If your credit score has been damaged by some financial stress, you can rebuild it by understanding how your score is calculated.

You will want to pay off and pay down the amount of outstanding debt that you have. One quick solution is to use an auto title loan to help. If you own a vehicle outright and have a clean title, you can use the title as collateral for a loan. An auto title loan is not dependent on a credit score and title loan companies, like Embassy Loans of Florida, do not do a credit inquiry.

The auto title loan can be secured in as little as an hour. Once the funds are received, you can use them to pay off or pay down certain open credit accounts. By lowering the amount of outstanding debt that you have, you will help improve your credit score.

An auto title loan is a short term loan with terms as short as 15 days and as long as 36 months. Paying off the car title loan will also have a positive effect on your credit score. The key is to decrease the balances on any outstanding debt. Reducing what is called the balance to limit ratio can have a great impact on your credit. If you can reduce that ratio, you can improve your credit score.