| When you bring your accounts current or the | | | | When the check is presented to the bank for |
| bankruptcy is discharged, you can start re-establishing | | | | collection, the bank credits your checking account with |
| your credit score. Here are three tips to help get you | | | | $100. Since you have overdraft protection, the check is |
| going: | | | | not returned for insufficient funds, and you won't be |
| Credit Insuring | | | | penalized. |
| Consider insuring your credit so you can get finance | | | | After the check is paid, you have a balance of $75 in |
| when you need to buy a car. No matter how bad your | | | | your account. The bank bills you monthly for the $75. |
| credit is, automobile dealerships can arrange financing | | | | You can repay the money all at once, or make |
| by selling you repossession insurance. It works just like | | | | minimum payments every month. If you make monthly |
| any other vehicle purchase: You make a down | | | | payments, the bank will charge interest and a service |
| payment and agree to make payments on the | | | | fee. Banks often report this activity to credit bureaus. |
| balance of the purchase price. | | | | And timely payments of debt actually improve your |
| In addition, you pay premiums to an insurance | | | | credit score rather than lowering it. |
| company that will cover the lender's loss if the car is | | | | Join a Health Club |
| repossessed. Repossession insurance is expensive, | | | | It may sound ridiculous but you can get in shape and |
| but it is one sure way to obtain a vehicle loan and | | | | re-establish credit! Actually you can join any kind of |
| re-establish your credit. If you can get a loan by other | | | | club that meets the following requirement: Clubs that |
| means without paying such insurance you can always | | | | require annual membership fees do arrange financing. |
| do so, but sometimes this is the only way. | | | | The club is probably working with a bank or finance |
| Getting Account Overdraft | | | | company, so find out who is extending the credit and |
| Apply for an overdraft line of credit on your checking | | | | whether they report payment activity. |
| account. A little-known credit repair tip is to start with | | | | If payment activity is reported, then you get your |
| your own bank. Most consumer banks will provide a | | | | payments recorded into your credit report and thus |
| line of credit for your checking account. It is often | | | | your credit score will improve. All of the above are |
| called overdraft protection because it is designed to | | | | heterodox ways of re-establishing credit but they |
| cover bounced checks. | | | | actually work which is, after all, what you are probably |
| What you can do is write a check for more than the | | | | seeking: Alternative ways for aiding your credit |
| amount available in your account. For example, if your | | | | repairing process |
| overdraft protection limit is $300 and you have $25 in | | | | . |
| your checking account, you can write a check for $50. | | | | |