If your credit is less than perfect, rebuilding it probably seems like a daunting task. While it’s true that you can’t repair a score overnight, there are steps that will ensure a higher score sooner rather than later. Whether you’re drowning in credit card debt and you keep missing payments or you’re considering bankruptcy, the following tips will help. 

3 Steps to Better Credit 

1. Devise a Budget

The single most effective way to rebuild credit is by making all payments on time from here on out. As such, it’s wise to devise a manageable budget that allows you to do just that from month to month. There are two primary methods for paying down credit card debt and other kinds of loans. If you need the psychological boost from paying off an account in full, funnel all extra income to the lowest balance—after that one is paid off, do so with the next lowest balance and so on. If you want to save on interest, though, put any extra funds toward the account with the highest interest rate after paying all the minimums. 

2. Open a Secured Credit Card

Signing up for a secured credit card is one of the easiest ways to start boosting your score. Because these accounts require a cash deposit, they’re usually available to those who don’t have a reliable borrowing history. Some lenders even offer secured accounts that can be converted to traditional accounts after a certain period of time. Taking this route will improve your score even more—as long as you use the traditional card responsibly and avoid racking up additional credit card debt. 

3. Obtain an Installment Loan 

Lenders want to see that you can handle different kinds of debt. Using a secured card will show them you can manage rotating credit, while taking out a personal loan or car note will demonstrate your ability to handle an installment loan. You shouldn't take out debt solely to improve your credit, but if you have the opportunity to obtain a small, low-interest installment loan—and doing so makes financial sense—you should jump at the chance. 

While the above tips can certainly help rebuild credit, they won’t address the underlying problem. To evaluate your situation with a seasoned debt relief attorney and regain your financial footing once and for all, turn to Brian R. Cahn & Associates, LLC. This firm has been devising practical solutions to complicated financial problems for more than 25 years. From their five offices, they serve clients throughout northwest Georgia. To discuss your concerns regarding credit card debt, medical bills, or a potential foreclosure, call (770) 382-8900. To find the office nearest you, visit their website.