You need credit history before you can buy a house or car, but you can’t establish a positive credit history without having someone extend credit to you in the first place.

Here are a few ideas on how to build your credit or correct past credit mistakes and rebuild you credit:

Review your credit report.

Obtain a copy of your credit report and review it for errors. The first thing you should do is obtaining a copy of your credit report. You cannot rebuild good credit without first removing the bad credit or errors contained in your report. 1 out 4 credit reports contains inaccurate information. If you credit is questionable to start with correcting slight error may improve your credit score and make a big difference.

Your Credit Report and Credit Score (FICO Score) is the primary tool used by lenders and credit card companies in determining your credit worthiness and your ability to repay your debts in a timely manner. If you have been turned down for credit within 30 days, you can get a free copy of your report by contacting your local credit bureau. Otherwise you can order a copy of your credit report online by clicking here.

Correct any negative credit on your credit report.

If you find any mistakes or negative credit on your credit file, you should take immediate steps to remove or correct it. It is essential to remove any negative credit before you begin to rebuild our credit. Negative Credit will lower your Credit Score and can result in you paying higher interest rates or prevent you entirely from obtaining credit.

If there are errors or inaccuracies on your credit file, the laws allows you to request a e-investigation of the disputed items. To do this you must contact your local credit bureau in writing to request a re-investigation. Your letter must clearly identify every item in your credit report that is in dispute along with a explantion why you are disputing the item.

Once the credit bureau has completed their investigation, they must provide you with the written results of the investigation. If an item has been removed or changed they are also required to provide you with a free copy of your credit report. Once an item is removed it cannot be put back into your file unless the creditor provides information to verify the accuracy of the information.

If the investigation does not change or remove the disputed items, you can request the credit bureau place your version in your file to be included in all future reports. There is no charge to request a reinvestigation of your credit file and disputed items.

Start Building or Rebuilding your credit.

One of the best ways to build credit t is to apply for one or two credit cards that have low credit limits. Start with a department store or gas card or even a a secured credit card, where the credit card is secured by a deposit with the bank. When you make a deposit to secure the card, the bank will issue a credit card with a limit that equals the amount on deposit. Credit Card Application, offers a number of excellent secured credit cards and credit cards for bad credit offers with online applications. Once you receive your card, make sure to use it every month and more importantly pay the balance when the bill comes in.

Keep the number of inquiries tomade to your credit file to a minimum. You should only apply for credit that you have a chance of getting. Don’t apply for credit cards that require perfect credit and you know you don’t qualify for. Remember, too many inquiries lower youur credit score and hurts your credit.