How can I build my bad credit?

Answer 1

Get all three of your credit reports. Contact transunion, experian and equifax. Make sure all the information is correct and that all the accounts on there are in fact yours. If there are any errors at all, get them corrected.

Satisfy any judgements or debts you have.

Go to bankrate.com. They have good articles for starting off your credit. If you have no credit at all or some problems - you might have to get a secured card. A normal credit card gives you a line of credit. A secured card is where you put up your own money, pay an annual fee and can't take out any more than you put up. The rates are high, so if you don't pay it off every month you will incur interest charges on the very money you put up! However, if you pay your bills on time for a year you will get a history.

You need to build a history. You need at least 4 lines of credit open that you have paid bills on time for at least 6 to 12 months. You might also try some store and gas cards. The rates suck and you can only use them with one retailer, but they help you build a history.

Once you build a history you can get cards with good rates and cancel the old ones.

Never borrow more than one third of your limit.

Always be on time with your bills.

Never just cut up a card. Call and be sure it is cancelled.

Answer 2

Well, the first thing to do is "discipline". Stop spending more than you earn. Next, get rid of all the lingering debts. If you have a whole bunch of, let's say, credit cards where you are not able to pay alot on all of them. Just think of it this way. You are already in bad credit. Therefore, knock them out as fast as you can. For example, pay off the cards that have the highest interest rate. Pay minimum payment on all the others and pay off that highest rate one. Then, once that is gone, knock out another one. Keep going until all your "bad credit" cards are gone. If you have any cards that are still in good standing, keep them. Continue to pay on them. As long as you pay "something", you're fine. It's better to pay $20 then nothing at all.
Once your "bad marks" are all paid off, start building your credit. Wait a little bit before building. Let the excitement of all the repayment die before getting more credit. Not only does not paying credit give you bad credit, but getting too many credit also knocks down your score.
After awhile, get a secured credit card. Even though you might have a $500 credit limit or something, don't let it get out of control. You must use it to get it on the right track. Purchase something very small, candy bar, I don't care. Then, pay if off early. Don't wait for the due date.
Instead of paying $100 at the end of the month, pay $50 twice. Credit companies see this and mark it good.
Then, at about 6 months of this, and paying off this secured card, cancel it. Now, you have a card that was in great standing and was paid off and cancelled.
Then, try for an unsecured card. Do the same thing. If you're denied, get another secured card and do the same thing. Keep this up for awhile and your credit will slowly rebuild.
When you finally get an unsecured card, don't screw it up. Keep it in good standing.
Eventually, your score will rise and you will be able to get a loan. Once you get a loan, pay it off in good standing.

Don't rush off and get a loan. Even if you're in bad credit, you'll still be able to get a loan. It'll be bad interest rate with an unrespected company. Resist and wait until the right time.

Don't quit and keep going. It'll take a long time. Trust me.

It took me years to clean it up.

Answer 3

If you have credit cards now, keep the oldest one. Then, pay off and cut up the rest. Then, stop carrying a balance on the card you keep and pay it off in full. If you do not have any credit cards now, get a secured one from a bank you trust and keep paying it off in full until your bank offers you an unsecured card. It will take some time, but it will be worth it.

Answer 4

keep not paying debts, your bad credit will build and build

if you want to rebuild your credit, then seek out credit cards and make on time pymts ad for $1 dollar more. it will reflect you paid on time and more than minimum balance. a lawyer can do it for you too in 6months to a yr depending on how bad your credit is

Answer 5

This card would be great for you. It is guaranteed acceptance without any credit checks. It reports to all 3 agencies. Check it out.
http://creditoffernow.com/imaginecard

Answer 6

1st step make a budget. Track all of your spending to see where you can cut down certain areas and pay off balances ASAP. Make all payments on-time. You can also write letters to your different creditors to ask them to take the marks off your credit it will take time so be patient

Answer 7

Read some tips and articles on this site on how to rebuild credit

Answer 8

you need to pay your bills on time, and keep your debt ratio low. Try going to household bank website and apply for one of their c.c. They are for people with poor credit, but it will help you to start rebuilding

Answer 9

The Best Absolute way to do it? Let the Pros help you! Go to www.Myfico.com and order the Suze Orman kit. If you do what she says it's pretty much a Guarantee it will get better !

Answer 10

analyse , the reasons why it has happened

after analysis keep positive approach, hardworking, honesty