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How to rebuild credit

Make the moves necessary to successfully improve your credit score. See how to do it here.

Chapter 3: Rebuilding credit, potential jobs and corrections to your credit report

Improving your credit is possible and you can rebuild a poor credit history. Understanding what goes into your credit score can help you understand how to rebuild it. You may find this video and worksheet helpful as it walks you through important topics and tips on improving your credit. Below the video are some items to keep in mind.


Video Transcript

Rebuilding credit

  • Check your credit card account online regularly.
  • Pay your bills on time to avoid negative reports to your credit report since bills over 30 days late will appear on your report.
  • Keep your credit utilization below 30%.
  • Bankruptcies will stay on your credit report for 10 years.
  • Add a monthly recurring charge (cell phone bill, gym membership, etc.) to keep old credit cards active.
  • Communicate with institutions and lenders if you are having difficulty paying your bills. They will generally work with you.
  • Employment credit checks are sometimes taken in consideration when people apply for jobs depending on the type of role and state in which you apply.

Annual credit report

  • allows you to pull one credit report from each credit bureau every 12 months (Pro tip: instead up pulling all three every 12 months, pull one bureau every four months).
  • Credit repair companies can pull your credit to help, but in reality you can repair things yourself without the added expense.
  • Save credit reports for your own records.

Your chapter 3 checklist:

Next step

Watch the next video in the series: Credit reports and scores
Get informed on the roles and relationships between credit reports, scores and bureaus.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.


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