Rebuilding bad credit

This is what makes up your credit score:1. Payment history- 35%2. Total debt owed to available credit ratio-30%3. Length of time establishing credit-15%4. Types of credit established-10%5. Inquiries and New accounts-10%

In order to build credit, you must first start establishing new accounts to raise your score. The best way to do this by opening a secured card. The reason I suggest this is that not only it's easier to apply for because you're placing a deposit to establish a credit line, but you're able to custom-build a credit card that will rebuild your score, since the limit can be increased by adding to the deposit. The deposit will be key because this can double as the down payment that you could use towards the home later on. For example, if you deposited $300, then your credit line would be $300, you deposit $2000, and so on, and so on. The higher you get the limit, the better it will look on your report because you should have a sizable cushion between the available credit you're using and the total available credit. The best way to use this card would be to make small purchases ($20/max) pay it off on time to show activity, and increase the limit every month. This way you're building credit without going into debt. Usually after a year of on time payments, the card upgrades to a regular credit card, and more importantly, the deposit is given back. Hopefully if you've gotten the limit as high as you possibly can, you will already have a good portion of the down payment and or other expenses toward buying the new house.

Also, another thing you can do is enroll with PRBC- PRBC is America's Alternative Credit Bureau, providing a helpful service to the over 50 million people with limited or no credit history. If you pay your monthly bills on time, PRBC can help you build credit to qualify for a mortgage and better interest rates.On-time payments for the following bills are not reported to the traditional credit bureaus:

Rent
Cable
Phone
Daycare
Insurance
Electric Natural
Gas
Cell
Phone

The only time your payments for these bills are reported to the other credit bureaus is if they're missing or late.With PRBC, your on-time payments count. You build credit for paying your bills on time, even if you have no credit history. PRBC offers two simple ways to start building credit today.