Rebuilding Credit FAQs

Why Do I Need To Rebuild My Credit?

Without good credit, getting a loan for a car, a house, tuition fees or consolidation of credit card debt becomes harder, more expensive – or even near impossible. However at Countrywide Bank’s Full Spectrum Lending Division, we see the bigger picture. We understand that life doesn't always run as smoothly as planned. That's why we offer useful insights into how to help you repair credit.

I have bad credit; can I repair my credit?

Be sure to read our tips on repairing credit for more information on improving your credit score.Or learn how you can monitor your credit or get your credit score by visiting CountrywideCredit.com.

What About Rebuilding Credit After Bankruptcy?

Rebuilding credit after bankruptcy doesn't happen overnight, yet by making regular, on-time debt payments, you can make steady progress. You can start rebuilding credit by opening a savings and checking account, and using it sensibly. Keep some savings in it, rather than using any personal line of credit as your safety net. Avoid bouncing checks or using your overdraft line of credit. Lenders look at how you handle a savings and checking account as one factor for determining your credit status, so give them something to be impressed about here.

Get into a habit of paying bills on time, or request an automated payment plan from your bank. Also, stay far away from payday loans, because the interest rates on these are generally exceptionally high. If you live within your means and pay your remaining debts consistently, rebuilding credit after a bankruptcy can be done.

I need to boost my credit score very quickly, what can I do?

A bad credit score can't be fixed overnight. But if you need to try and quickly increase your score by a few points to be approved for a home loan, there are several steps you can try.

Checking your credit report for errors is the first step. Even if you've had a late payment, call the company and ask for a 'goodwill adjustment' and see if they will erase the late payment.

The problem is that fixing an error can take anywhere from a few weeks to a few months. If the credit report can't be fixed on a timely basis, your lender might accept a letter of explanation along with your loan application.

A faster way to increase your credit score is to improve your debt-to-credit ratio. This means, of the credit available to you, how much have you actually borrowed? Lower ratios are better.

Don't try to do this by applying for a bunch of new credit cards, which can decrease your score. Instead, try to reduce the balance you owe on your existing cards. Paying off your debt is preferable to moving it around, but if you don't have the time, it's generally better to have low balances on several cards, instead of a high balance on one. Don't use more than 30% of your available balance on a card. You can also call your credit card company and request a limit increase.

Also, make sure to keep using the credit cards you've had the longest. The longer your credit history, the better your score.