- Introduction
- Acknowledgements
- 1: Getting Ready
- 2: The Costs of Space
- 3: Understanding Credit
- What is Credit?
- Establishing Credit
- Credit Reports
- Credit Scores
- Your Credit Report and Score
- Good Credit vs. Bad Credit
- Alternative Credit
- If Credit Problems Arise
- Rebuilding Credit
- Avoiding Predatory Practices
- Credit and Your Space Hunt
- Lending Criteria
- Credit and Insurance
- Credit and Identity Protection
- Resources: Chapter 3
- 4: Professional Services
- 5: Finding Space
- 6: Residential Leases
- 7: Commercial and Industrial Leases
- 8: Buying Real Estate
- 9: Types of Mortgages
- 10: The Mortgage Application
- 11: Ownership Models
- 12: Purchasing Alternatives
- 13: Chicago Zoning Ordinance
- 14: Chicago Building Code
- 15: Chicago's Neighborhoods
- 16: Property Taxes
- 17: When You Find a Property
- 18: Inspections
- 19: After Moving In
- 20: Insurance
- 21: Utilities
- 22: Rehabbing Your Space
- 23: Safe and Healthy Spaces
- 24: Green Practice
- 25: When Disputes Arise
- 26: Space Emergencies
- 27: Facility Development Planning
- Bibliography
Rebuilding Credit
Rebuilding your credit requires time and patience. Once you are in a financially secure and stable position, take the following steps:
Most bad items can legally remain on your report only seven years after the creditor reports them; the credit bureau must then remove the item from your report. When these items come off, your credit score will typically increase in a few months. However, some credit items (bankruptcies, for instance) can stay on your report for up to 10 years. If an outdated item is not removed from your report, contact the credit bureau immediately for an explanation and/or to get the item removed. See Your Credit Report and Score for more information.
- Start paying your bills on time. This includes utility bills, credit cards, car payments, rent -- basically, anyone to whom you owe a monthly payment.
- Pay off any past due accounts and delinquent debts.
- Open a checking or savings account. Lenders and some landlords review your bank statements when making credit decisions.
- Open a credit card account. You do not have to use the card, but having one does put you back on the credit map. If you have problems obtaining a conventional credit card, try to obtain a secured credit card, under which you deposit a certain amount of funds that are used to set the limit on your credit card. For example, if the bank gives you a $300 limit for a secured credit card, you must provide a $300 security deposit.
- Save. A rainy day fund will come in handy when unexpected expenses and costs arise.
- Give yourself time. Once you’ve gotten back on track, allow three months to a year to pass before expecting any increases in your credit score and rating. As your score increases, so will your ability to access more credit opportunities.
Most bad items can legally remain on your report only seven years after the creditor reports them; the credit bureau must then remove the item from your report. When these items come off, your credit score will typically increase in a few months. However, some credit items (bankruptcies, for instance) can stay on your report for up to 10 years. If an outdated item is not removed from your report, contact the credit bureau immediately for an explanation and/or to get the item removed. See Your Credit Report and Score for more information.