Clean Bad Credit
How to Clean Bad Credit
Examine the report for errors or out-of-date items. Contact the reporting company to correct any mistakes. Be sure to educate yourself about your rights under the Fair Credit Reporting Act (FCRA). Also read the Credit Repair Organization Act (CROA), because this lays out the federal laws and guidelines that credit reporting companies must follow.
Positive Steps to Take
Obtain a secured or pre-paid credit card, make small charges, and pay off the balance every month. Obtain a credit card from a department store or gasoline company--they're easier to get than a Visa or Mastercard. Again, make small charges and pay off the balance in full every month. By building a good payment record, you show your desire to clean bad credit.