When you have bad credit then unless it is due to erroneous information on your credit reports, there is little you can do repair it quickly. Your credit reports are an accurate reflection of the way in which you have handled your finances and there is no quick fix. Certainly you can work to improve your credit score over time, and see a significant improvement within a year, but you cannot eliminate any past factual information.
A bad credit score will let you down in many areas and could cost you a potential job and result in you paying higher insurance premiums. It will exclude you from the best financial products available and generally leave you in the murky hands of sub prime lenders. A bad credit score needs careful nurturing into a better position.
Firstly you need to obtain copies of your credit reports from each of the three main credit bureaus, as they each compile their information in different ways. These are available free of charge once every year from TransUnion, Equifax and Experian, and will give a clear picture of the information recorded.
If there are any errors on the reports you have entitled to have them removed, and information relating to missed payments and collections activities should not show up after 7 years. Bankruptcies will remain on your records for 10 years. If your report does show detrimental information which is accurate it will lose its importance as you begin to handle credit responsibly.
The best way to improve your credit score is ironically to use more credit, which you will probably find difficult to obtain unless you specifically respond to advertisements by sub prime lenders who offer ‘bad credit’. You would be much better advised to go to a reputable lender with a good name and take out a secured credit card to start to build up a good reputation on.
Secured cards take the risk out of creditors lending to you, as you pay a deposit equivalent to your credit limit to secure them. They usually carry fees but these are just temporary until you are accepted back into the world of unsecured credit. The quickest way to improve your credit score using a secured credit card is to make small monthly purchases on them which do not exceed 30% of your available credit limit. Pay the balance off in full at on each due date with an automated payment.
Your use of the card will be reported to the credit bureaus so a report will be formulated demonstrating that you use credit wisely and repay it on time. Do not treat the card as an opportunity to go on a spending spree up to your credit limit as if you do so it will have no beneficial impact on your score.
Don’t get caught in the trap of believing that a prepaid credit card will assist your credit score as it won’t. These are not in fact actual credit cards so have no impact on your credit score. Also steer clear of any fee charging agencies offering to improve your credit score quickly as it cannot be done.
Another way to improve your credit score is to use the Fico Expansion scheme by working with their partner PCRB. Information regarding that is here. http://www.helium.com/items/1833672-why-prbc-is-an-alternative-to-other-credit-bureaus
If you are serious about improving your credit score then you should see a marked improvement within a year, as long as you pay everything in a timely fashion and do not overuse credit. Accurate detrimental reports will begin to hold less significance to lenders when they see you are making a conscious effort to be a responsible borrower.