There are many reasons to rebuild credit after a bankruptcy, foreclosure, car repossession or reported collection accounts. Rebuilding your credit sooner rather than later can help you get from bad to good credit faster. Good credit can help you get better financing options, rates, and terms that are more beneficial to your financial wellbeing.
Although you may have experienced a financial setback that affected your credit standing, rebuilding credit can happen immediately. You want to rebuild credit after a major credit setback to ensure you have access to credit needed and at better rates and terms in the future.
The first step in rebuilding credit is to assess your actual credit standing to determine what is necessary to rebuild your credit profile. A thorough assessment and understanding can determine if you will need to settle outstanding debts, remove paid collection accounts or reestablish credit through unsecured credit cards or loans.