How to Minimize Bad Credit

Bad credit can prevent a person from obtaining a nice car, a decent place to live, and sometimes it can even prevent a person from getting a good job. If you have bad credit, you need to know that time is the ONLY thing that can erase valid negative credit entries (7 or 10 years depending on the credit type). However, you also need to know that there are things that you can do to minimize bad credit; follow these steps to learn.

Difficulty: Moderate

Instructions

1. The first thing you’ll need to do in order to minimize bad credit is to get copies of all three credit reports. Gather up all of your information and head over to Annualcreditreport.com. You will need to enter personal information ranging from your social security number and date of birth, to your previous credit transactions and former addresses.

2. Once you receive all three of your credit reports, you will need to study them to make sure that all of the negative credit is valid. If you have doubts about any negative entry on your credit report, you will need to start an inquiry. Along with your credit reports, each credit reporting agency will send detailed information about how to start an inquiry. Remember, anything that you can challenge and have erased from your credit file will minimize bad credit.

3. Finally, you will need to apply for a secured credit card. Perform a Google search and find the best secured credit card to suit your needs. You will need to do this because you must establish new credit in order to minimize the bad credit.
   
   Once you receive your secured credit card you will need to make small purchases and make timely payments. This way, future creditors will see that your payment history is improving and you will be on your way to building a better credit file.

Resources

• Free Yearly Credit Reports from all 3 Credit Reporting Agencies

[cherold598]

on 10/7/2009 Good points and excellent tips for minimizing bad credit. 5* and recommend.