How to get rid of bad credit
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Know your credit rating. Before making credit restorations, order a copy of your free annual report from AnnualCreditReport.com. View the report online and look for areas that need improvement such as payment history or debts.
Dispute credit report mistakes. A misspelling or typo can result in someone else's information being listed on your report. Negative remarks -- whether correct or inaccurate -- lower your credit score. Write to the credit bureaus and report any mistakes on your personal file. All three have online routes for you to use to protest suspected errors.
Make automatic payments. Everyone knows the importance of timely payments in regard to credit scoring. But if you are unable to stay on top of your payment due dates, sign up for online account management through your creditor's website and your personal bank, and request automatic billpay.
Lower your debts. Look for ways to cut back
and reduce your expenses (less entertainment and shopping) to pay off your credit card debts and restore your rating.
Consider a secured credit card. Speak with a representative from your local bank and request an application for one. These credit cards are available to persons with no credit and a bad credit history. Pay your deposit, and use the card to help fix your credit history.
Ask for a higher limit. Maxed-out credit accounts damage your rating. If you have a good payment history, but you're nearing your account limit, contact your credit card company and ask for a limit increase to widen the gap.
Use your oldest credit cards occasionally. Even if you're trying to pay off your credit cards and improve your history, continue to use your oldest cards for small purchases. Older cards represent a longer credit history. However, if the account is inactive, creditors may not report to the bureaus.Source: ehow.com