Clean Bad Credit
How to Clean Bad Credit
Financial experts agree on the important steps to take to clean bad credit. First, if credit card expenses are your downfall, lock away those cards--better yet, cut them up. Next, obtain copies of your credit report from the credit bureaus.
Examine the report for errors or out-of-date items.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
You might be surprised how much better you feel about your financial circumstances if you can just get some control over the situation. Small steps may seem insignificant, but they do have a positive effect on your attitude, and that, in turn, provides energy for taking more steps. To clean bad credit, pay off your bills before asking for more credit.
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.
