How to Rebuild Credit

Nearly 1 in 3 people has a credit score below 670. If that's you, don't worry - you're in good company. With some smart habits and patience, you can rebuild your credit and open doors to better loans and credit cards down the road.

Simple steps to rebuilding credit

Good credit doesn't happen overnight, but these steps can help:

• Check your reports first. Get a free credit history report from KOHO to see where you stand and spot any mistakes.

• Pay bills on time, every time. Nothing helps your credit more than a solid payment history. Set up reminders or auto-pay so you never miss a due date.

• Catch up on overdue bills. If you're behind, contact your lenders - they might work with you on a payment plan.

• Become an authorized user on someone else's card. If a family member with good credit adds you to their account, their good habits can help your score.

• Try a secured credit card. These cards require a deposit but can be a great way to build credit if you use them responsibly.

• Keep your balances low. Try to use less than 30% of your available credit to show lenders you're not maxed out.

• Only apply for credit you truly need it. Each application can temporarily lower your score.

• Keep old accounts open, even if you don't use them much. They add to your credit history length and available credit.

• Track your credit score for free with KOHO to see how your efforts are paying off.

• Start building credit history again with KOHO's Credit Building feature.

The road to better credit

Rebuilding credit takes time, but it's absolutely doable. Focus on developing good habits now, and your future self will thank you. Better credit means more financial options, lower interest rates, and less stress when it's time to make big purchases.

Just remember - this is a marathon, not a sprint. Celebrate small wins along the way, and stick with your plan. Your credit score will improve bit by bit, and before you know it, you'll be in a much stronger financial position.