If you've recently paid off a lot of debt, you may be wondering where to go from here. Maybe you went through a divorce and got stuck with a lot of high interest credit card debt, or got behind on your payments after a job layoff. Whatever the reason, you fell behind with your payments, your credit report suffered for it, and now you're ready to get back on track. Luckily, it's a lot easier to re-build your credit than it was to get out of debt!

Here are some tips that will have your credit report sparkling in no time!

First, you should expect to spend about a year rebuilding your credit. I can hear some of you groaning–after all it took a few years to get out of debt, right? Yes, but you must understand things from a lender's point of view–they need to see proof that you are serious about keeping up your credit history.

You will need to establish some sort of credit, so that you can show your future creditors that you can be trusted. If you've had serious credit mistakes in your past, that may mean getting a secured credit card. These types of credit cards are secured by a bank balance, which will equal the spending limit on the card. The point of them is to build credit when no one else will issue you a card.

If you can apply for a low interest rate card, you should get one and use it for the sole purpose of rebuilding your credit.

Another credit reporting building method is to apply for a personal loan, and then pay it according to the terms I've outlined below.

The biggest thing you can do to rebuild you credit is to pay your payments on time. That means that you can't be late–not even once. If you are mailing in your payments, be sure to give it plenty of time to not only reach the destination, but also clear the proper processing channels. If you think that you've cut it too short, overnight it. Nothing should stop you from getting those payments in on time! Remember that even one late payment can make a difference of whether or not you get that car or home loan!

You should also shoot to pay more than your minimum payments every month. Ideally, you would pay off your credit card every month, but if you can't do that, then do pay more than the minimum. For example, if your minimum payment was $25 per month, try to pay at least $35. This will accomplish two things. First, it will make you look better in future lender's eyes, and secondly, because by doing so, you will paying more toward your principle balance every month, (as opposed to interest), and that will reduce the overall amount that you'll have to pay.

Do all of these things with patience and determination, and you'll soon find yourself with a credit rating that you can be proud of!

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