Once you have fallen into debt it can sometimes be quite difficult to get yourself out of debt on the right track to rebuilding your credit rating.  While these tasks can be difficult they are not entirely impossible.  If your credit score has taken a hit recently where are a few tips that you can follow so that you can start to rebuild your credit history.

The first step you will want to take when looking to restore your score is to get a new line of credit.  While this may be easier said than done it is a vital step in the process.  If your credit score is so low that the major banks will not issue you a new line of credit there are still a few options you might want to consider.  You could try applying for a new line of credit from a department store or gas station.  These companies are less stringent about their requirements with whom they issue credit cards to.  You may also use secured credit cards.  Secured credit cards are an excellent way to start rebuilding your credit score and keep you from falling into further debt. 

There are also several resources on the internet that will help you find credit cards for those with bad credit scores.  It is important to remember to not apply for too many new lines of credit at one time.  When you have a ton of applications open it does not look good on your credit report and can actually have negative effects.  You will also want to avoid using prepaid credit cards when trying to rebuild your credit rating as these types of cards do not report to the three major credit bureaus and will not affect your credit score in anyway.

Once you have found a new line of credit it is important that you develop new credit habits.  These new habits will allow you to start building a solid credit score and help you replace your bad debt with good debt.  Ways that you can start to create new credit habits is by creating a monthly budget.  When you create a monthly budget it will be easy for you to see exactly where all of your money is going each month.  You will be able to see if you are overspending in certain areas of your life and will be able to cut back on the amount of money you spend in those areas. 

Also, when you create and stick to a budget this will make paying your bills on time that much easier.  One of the best ways to rebuild your credit is to pay all of your bills on time and in full.  By creating a budget you will always make sure that you have money for your bills set aside and can make your payments monthly.  Of course with a budget you will also be ensuring that you are only charging what you can afford.  If you do not have the money in your budget for that summer vacation then it will be wise to hold off on taking it until you can actually afford it.

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.