Anything can happen that leads someone to having bad credit such as loss of a job or an illness; just to name a few. Bad credit happens to good people, and you are not alone if you have bad credit. While you may feel like all hope is lost, there are a few reputable financial organizations that offer specific loans for people with bad credit. So how do you rebuild your credit history and get back on track? First understand that there are no quick fixes to this problem, late payments and charge offs do not go away quickly but with time and discipline these items will slowly disappear. Therefore, steer clear of companies that offer to eliminate your poor credit history quickly. Usually, these companies are not legitimate because legally late pay etc stays on your credit profile for several years.
Second, get your credit report from the three credit reporting agencies, Equifax, TransUnion and Experian every year and check it for accuracy. The Fair Credit Reporting ACT (FCRA) requires that each credit agency offers consumers a free copy of their credit report annually, so you should not have any problems obtaining yours.
One strategy you can use to rebuild your credit is to open a secure credit card, and many banks will let you open a secure credit card. What you do is deposit a set amount and the bank will use that amount as your credit limit and give you a credit card. Depending on your individual situation, you can pay your bill on time and apply for a regular credit card in about a year or two.