Bad Credit

Bad credit can limit a person's financial situation. There are bad credit credit cards; these companies will work with people with a poor credit history. These cards may have no credit checks, no credit turndowns, and no employment checks. They may guarantee instant online approval and have a specific credit limit. Prepaid cards are another solution. With these cards, the cardholder can't get in debt.

A person should really strive for good credit. Bad credit will be noted on the credit profile.. These notations will be late payments, an account assigned to a collection agency, and bankruptcy. Credit problems can get in the way when a person is looking for a new home, car, or insurance who will be looking at the person‘s credit rating. With good credit, a person can get lower rates and better credit offers..

Here are ways to go from bad credit to good credit:

1. Pay your bills promptly.

How you paid bills in the past will influence lenders on how you might pay in the future.. 

2. Have the right amount of credit cards.

Financial experts say two to four is the right amount. 

3. Pay the minimum due.

Don't ever pay less than the minimum. It takes long enough to pay just the minimum..

4. Review the credit report periodically

Look at the credit report from the three major bureaus, Experian, TransUnion, and Equifax.. Check the profile at least once a year. Make sure any errors have been fixed. Look for signs of identity theft.

Beware of places advertising to “erase bad credit”. They promise to clean up the report. A scam artist will, after collecting big fees, call the credit bureaus to say that the negative information in the report is untrue. The bureau will take out the information while looking into the claim. Then the scam artist will show the person a supposedly clean report.

However, after the bureau investigates, the negative details are put back into the report. Correct negative details won't be removed; only incorrect negative details will. The way to tell if the offer is legitimate is that a scam artist will ask for money upfront.. A credible repair place won't ask for money until they've done what they promised. With vigilance, a person can repair credit.