You’ve finally gotten debt relief to pay off your debt. Congratulations. Now you want to get back on your feet and start building your credit. The good news is rebuilding your credit is not as hard as you may think. It might actually be a good opportunity for you start over with a clean slate. Below are 10 steps that may help you in restoring your credit.

1. Two factors largely determine your credit rating: your payment history and your amount of debt- your debt-to-income ratio. Since you’ve paid off your debts with the help of a debt relief program and reached zero balances on your accounts, you will have already lowered your debt-to-income ratio and therefore, that portion of your score will improve. This will help in offsetting some of the negative impact on your credit score. You’re already on your way to improving your credit!.

2. The first step is to get a copy of your credit report. By reviewing your credit report you can see what your credit profile looks like in the same way that a potential creditor will see. This should be used as a starting point. You can obtain a free copy of your credit report once per year from each of the 3 credit bureaus by visiting their individual sites or contacting them by phone.

• Equifax:  800-997-2493  www.equifax.com
• TransUnion:  800-888-4213  www.transunion.com
• Experian:  888-397-3742  www.experian.com

Additionally checking your credit will help you catch errors that don’t belong on your credit report. It is estimated that one out of four credit reports contain errors. You have the right to dispute these errors and get them put of your credit report.

3. Reestablish a couple of credit cards. You may have a hard time getting approved for a traditional credit card, but a secured credit card will be just as good. Try to get a family member or a friend to help you co-sign a loan or credit card. Be careful about applying for every card you can think of, since credit inquiries are a negative mark on your credit report. Most lenders are deterred if they see more than four to six credit inquiries in a six-month period.

4. Once you have a card or two, make small purchases and pay them off immediately. This will help build up your good credit. As you get more stable, you can try making larger purchases but make sure to pay off the credit card balances every month. Your credit score will improve if you pay your bills promptly.

5. Do not max out your credit cards. Try not to exceed 70% of the credit card’s limit. For example, if the credit card limit is $1000, you should only charge up to $700.

6. Remember to always pay your bills on time. This accounts for 35% of your FICO score. It’s the most important factor in proving your credit-worthiness to your creditors.

7. Since you’ve paid off your debts, start putting together an emergency fund. Start off by saving three months of your mortgage/rent payments and three months of car payments for obvious reasons.

8. Start putting together your financial plan. Set goals for your future retirement, college for you or your children. It is very important to avoid slipping into your old bad spending habits.

9. Create a household budget and live within your means.

10. After you have been a good customer with a lender that you may have made a mistake with in the past, it doesn’t hurt to give them a call and see if they are willing to remove that negative information for you. There’s a good chance they are willing to be.

Before you know it, you will have rebuilt your credit, raised your credit score; set aside an emergency fund and designed a financial plan.