So maybe you don�t have the best credit. Or maybe you�re having some trouble due to a bankruptcy. The most important thing you can do now is to make timely payments to any credit that you currently have open. This will start a credit trend that will start to clean up your credit in just a few payment cycles. This positive trend will show lenders that you are serious about putting your bad credit history behind you.

Adding more debt to your existing credit card won�t be as helpful as opening and paying off several different kinds of credit accounts. This strategy will improve your credit and help you towards long term goals like that first mortgage or any other large loan.

• Rebuilding credit is like starting from scratch. Starting small might be the best option for rebuilding credit. Opening credit lines with department stores or local credit unions may be your best bet in the beginning.
• If you don�t qualify, ask a friend or family member to cosign for a small loan or credit card. Re-establishing your credit will go swiftly by opening these accounts and closing them quickly and on time.
• If all else fails, consider a secured credit card. These are granted to people who make a deposit with the credit grantor. These cards work like major credit cards and have the same purchasing power. As long as the secured credit card grantor reports your prompt payment history to one of the three major credit card bureaus, you�ll be building your credit.
• Use new accounts in moderation. Don�t go overboard with these new accounts. You want to use these accounts to build credit, not ruin it.
• Make payments that are more than the minimum. Make more than the monthly amount on any of your credit cards, this will pay them off faster and increase your score.
• Don�t carry a balance that is more than 30% of your credit limit. Some creditors will consider this excessive debt.
• If you have extra money, you can open accounts for the sole purpose of paying them off.

Be patient. It will take time for your new, responsible credit history to gain some momentum. The key is to show creditors that you are not relying on credit cards and loans to survive. That�s the reason that opening and paying down these accounts is going to make you look good. As long as you are patient and pay down these accounts, you will start building a credit history that will be looked upon favorably by creditors.