Basics Beginner: How to Rebuild Bad Credit

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To rebuild credit, it can help if you use your credit card every month.

True

False

True. Using it regularly can help you build up your credit. Also, paying it off on time can help you build your credit rating.

When a disputed items form is submitted to the credit bureau, the bureau has _______ to investigate and contact you with their results.

72 hours

30 days

3 months

30 days. Regulations require that the credit bureau complete an investigation of the items you dispute and contact you with their findings within 30 days.

Which of the following is NOT a good reason to have a credit card?

To pay for daily expenses

To pay for emergency expenses that go beyond your savings

To rent a car

To build credit

To pay for daily expenses. Daily expenses are best paid for with cash.

When it comes to negative information in your credit report, most negative information will appear in your credit report for _______.

One year

Three years

Five years

Seven years

Seven years. Although some negative information can appear for longer, most negative information will appear in your credit report for seven years.

Which of the following is a good credit-building step?

To submit multiple credit card applications on the same day

To 'max out' any credit cards you already have

To avoid adding money to any bank deposit accounts

To apply for a small retail store or gasoline company credit card

To apply for a small retail store or gasoline company credit card. These are often the easiest cards to get. If you get a card, charge items and pay the bill on time.