How To Rebuild Your Credit File When You’ve Had Financial Trouble

If you're reading this, I'm earning money in some way. I was compensated with money and/or product. Thanks for helping to feed my family. I also may have a financial interest in companies named. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not an accountant, lawyer, doctor, fitness expert, or nutrition specialist. So, talk to a professional before acting on anything you read, watch, or listen to below. Get your own advice and do your own research. Email me at [email protected] with questions.

No matter how careful you are with money, financial trouble can fall upon you in the drop of a hat. Charges and large costs can creep up on you without any given warning, and this can quickly lead to a string of financial problems. Sometimes it’s difficult to keep on top of your money, especially when you’ve got more going out than you have coming in, that debt can quickly mount up to an unmanageable amount. As you know, financial difficulty can badly damage your credit file and prevent you from being able to make larger purchases or borrow money in the future. Rebuilding your file isn’t always easy either, so check out these tips on how to rebuild your credit file when you’ve had financial trouble.

Practice healthy money management

First of all, it’s important to practice healthy money management. It sounds a lot easier than it actually is, and it involves being sensible with your spending. Cutting out takeaways, unnecessary costs such as a magazine subscription, and putting back groceries you don’t really need will mount up to more than you think. The more you’re able to cut out, the more money you’ll have spare each month and the sooner you’ll be able to get out of debt.

Speak to providers

Sometimes debt can arise due to missed payments of your monthly utility bills such as your gas and electric. A little known fact is that these companies can (and are more than willing) to help you through a sticky financial situation. Simply speak to your providers and explain the situation that you’re in. More often than not, they will set up an affordable payment plan so that you’re not out of pocket and they still get the money they’re owed.

Consider debt consolidation

Debt consolidation is quite a scary thought. The idea of giving in and admitting that you’re a little hopeless financially is difficult to do. However, debt consolidation is a great way of amalgamating your debts into one and paying one lender rather than multiple lenders. Also, companies that you owe will no longer be able to contact you, and debt consolidation companies will deal with them for you. Rashad Blossom focuses on bankruptcies and restructuring and can help you get back on your feet.

Keep an eye on your credit score

Knowing what you’re looking at when you’re given a credit score can be daunting, and many people avoid knowing what their score is in fear of not understanding the jargon that comes with it. However, credit report companies such as Clearscore have simplified the whole process with a handy free-forever app. They can give you tips and advice on how to build up trust again with lenders by offering credit cards, loans, and accounts that will help you prove that you’re able to handle your money. Keep an eye on your credit score, follow the tips, and watch your numbers rise and your trust rating improve.