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3 Simple Ways to Rebuild Your Credit

The reality is that many Americans will likely face financial hardship in the coming weeks and months. Although average U.S. resident has a FICO credit score of 700, millions of others have low credit scores that disqualify them from all kinds of opportunities. And with so many people unable to pay off debts or even keep up with regular bills, thanks to the global pandemic, things can quickly spiral out of control.

Fortunately, it is possible to rebuild your credit. It might seem like a daunting task at first, but there are actually some very simple ways to gain control of your FICO score and make positive changes for your financial future. Here are three basic tips you’ll want to follow if your goal is to improve your credit.

  1. Pay Bills On Time: This tip might seem obvious, but you’d be surprised by how many consumers overlook this simple step to rebuilding their credit. Paying your bills on time is one of the most effective ways to get your credit score in check. That’s because payment history is actually the biggest factor taken into consideration when determining your score. Late payments stay on your credit report for several years, so it’s much better to pay the minimum than nothing at all.
  2. Obtain a Secured Credit Card: The thought of using a credit card might make you nervous, particularly if you’ve had issues with debt or bad credit in the past. But in specific cases, a credit card can help. A secured credit card is a good option for those who have had to close other credit card accounts and are unable to open new ones. These cards require deposits upfront and use a linked savings account as collateral. Not only will this allow you to have a card with a realistic credit limit, but your payments will be reported to credit bureaus each month. If you pay those bills on time, you’ll have an easier time rebuilding your credit thanks to that frequent reporting.
  3. Explore Lease Purchase Programs: It might interest you to know that making a purchase can actually bolster your efforts to rebuild credit. If you need a replacement air conditioner or require new furniture, you may not want to buy those items outright — or you may not be able to afford to. However, lease to own programs can allow you to bring these items home, pay for them each month, and eventually own them outright. Lease purchase programs can make major purchases more feasible for many folks, as they won’t require one large payment. But because you’ll pay these items off each month like a credit card, these customer financing options can do wonders for your credit score. Best of all, these customer financing options won’t discriminate against those with bad or non-existent credit, leveling the playing field for those in need.

While rebuilding credit requires some time and effort, it can be done — often by making some minimal changes to your lifestyle. To learn more about the customer financing options that Okinus retailers can offer, please contact us today. We’d love to help you take that important step in order to rebuild your credit and gain access to the products you need.

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