Rebuilding a Damaged Credit Reference Bad credit can happen to good people. Don't despair. There are ways you can get your credit reference back in shape. But you have to start working on it today -- and keep working hard to show potential creditors that you're serious about getting your credit reference back in order. As you do so, your ability to obtain credit will improve over time, resulting in better credit offers and a substantial savings in money. Get Started Now Open new accounts and pay them off. Being able to repay a variety of new accounts is a key step in rebuilding your credit reference. That means that devising a strategy to open and pay off as many different kinds of accounts as you can is better than adding more debt to an existing credit card. Start small. Rebuilding your credit reference can be similar to starting over from scratch, and starting small may be the easiest option. Credit cards from department stores can be useful. Consider asking for help. If you can't qualify on your own, ask a friend or family member to co-sign for a small loan or credit card. If you can stay current on a major credit card account or small car loan, this will speed up the process of re-establishing good credit reference in your own name. Consider a secured credit card. They are guaranteed by a deposit that you make with the credit grantor. The cards offer the purchasing power of a major credit card. Just make sure the grantor reports payment histories to one of the credit reference agencies so you’re building your positive payment history. Use your new accounts in moderation. And make payments that are more than the minimum. You can keep a small balance so that your positive payment history will continue to show up on your credit reference report. Keep your balances low. Avoid carrying a balance that is more than 30% of your credit limit (creditors may view it as excessive debt that you may not be able to stay current with). Be Patient - it's Worth it It takes some time for your new credit reference history to gain momentum. You're demonstrating that you are not depending on certain credit cards and loans for your financial survival. That's why opening and paying down accounts may make it a little easier to get more credit. With patience and timely repayments, you will likely be able to build a new credit reference history that creditors will look upon favourably when making decisions about your ability to handle even more credit.