Get the most out of debt management. Help yourself by filling out the form on the right to be contacted by a professional debt counselor.

Once you have completed your debt management plan and all of your debts are settled and paid off, it is time to start working on rebuilding your credit. You will still have to deal with the repercussions of settling your debts but at least records of your financial woes are not on public display in the court house records as a bankruptcy would be. It will only show up as an entry on your credit report and will drop off of your credit history all together in around 7 years rather than the 10 years that bankruptcy frequently takes to drop off.

Confirm the Accuracy of Your Credit Report

The first thing you will need to do before you apply for any new credit accounts is to order a copy of your credit report. Carefully review it to make sure that it is accurate and confirm that all settled debts are listed in one of the following ways: Closed, Paid or Settled and all should show a $0 balance. If you find any inaccuracies, contact the credit bureau to have them corrected. If the lender has not updated your information with the credit bureau then you will need to contact them to request that they update your information. If this fails, file a dispute with the credit bureau and use documentation from your debt settlement to back up your claims.

Apply for New Credit

Once you have successfully completed your debt management plan you will want to begin rebuilding your credit score right away. The fastest way to accomplish this is to open one or two new accounts. It is probably best when you are first getting started to select a credit card that specifically caters to people who have had credit difficulties. It will be easier to obtain and will give you a tool to add to your financial arsenal. It is best to steer clear of offers for platinum or titanium cards at first as they usually require a high credit score for approval. Be patient! You will get there in time. The key is to faithfully make your payments on time and keep your balances paid in full if possible. If you do carry a balance, keep it below 30 percent of your credit limit. If you habitually carry balances higher than 30 percent it can damage your credit score.

Shop Using Your Cards

This is not an invitation to max out your new cards but in order to build your credit score you will need to use your new credit cards. It does not have to be a large purchase, just steady use and consistent payments. When possible, pay off your cards when the statement arrives. You can also set up automatic payments from your checking account to avoid late payments. It is convenient and will insure a timely payment history.

Limit Your Total Accounts

After you have obtained two or maybe three accounts, do not apply for any additional credit cards right away. Having too many open accounts will lower your credit score. Faithfully maintain these new accounts and allow your credit history to show more positive entries than negative and over time this will help to build your credit history. Another factor that counts for 15 percent of your credit score is the age of your accounts so wait until you have had these accounts for at least a few months before considering any additional accounts. As the new accounts age and show positive payment history, your debt settlement and previous negative credit history will weigh less on your credit score.

Do Not Close Accounts In good Standing

While you do not want to carry balances on your accounts, if you have accounts in good standing, do not close them. Closing multiple accounts within a short time frame can cause a negative entry on your credit history.