A long credit history has a positive impact when you rebuild credit. Having a large number of accounts in good standing with zero balances is a plus, not a negative to rebuild credit. Your credit score is calculated by a number of factors such as payment history, amount of time you have had credit, the amount you owe and much more. Here are some tips for you on how to rebuild credit:
- Do not open multiple new accounts just to show a credit history.
- Late payments count against you. Don’t miss payments on bills or loans.
- Don’t overdraw your bank account. You can damage your credit record and will be charged fees.
- You are responsible for your financial accounts. Don’t let other people use your bank account, credit card, debit card or ATM card.
- Always close out or transfer all accounts (gas, water, telephone, electric, cable) before you move.
- Remember to account for recurring bills on your credit card, such as subscriptions or club dues.