How to rebuild your credit in 8 easy steps

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Having bad credit makes it hard to qualify for loans or forces you to settle for less than desirable terms for credit.

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1. Check your credit report: Know exactly how you can improve. This will help you target the problem areas first.

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2. Work to catch up with your payments: Bring all your credit accounts up to date. Don't be behind on payments.

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3. Pay your bills on time. Build your payment history track record up. Consider setting up automatic payments.

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4. Avoid closing credit card accounts. The longer your credit history, the better your score. Keep cards alive.

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5. Pay down debt. Using a lot of the credit available to you works against you. Cut back on credit utilization.

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6. Use a secured credit card to build good credit if poor credit does not allow you to qualify for a regular credit card.

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7. Obtain an installment loan. Careful though. Start small. Plan your applications and work to boost your score.

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8. Practice good money habits. Set aside money. Save for the future. Invest. Work towards financial stability.

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