It isn't any fun having a bad credit rating, because it will keep you from being able to get affordable credit when you need it.
Such things that most people take for granted, such as purchasing new cars, buying a house, renting an apartment, getting better credit card terms, and getting a bank loan can all be very limited by a bad credit rating.
Even applying for some jobs may be futile if you have a bad credit rating.
People that don't have good credit ratings aren't given many chances and are seen as irresponsible, financial liabilities.
The question most people have is "How do I get a good credit rating now that I've ruined my credit rating?" You need to figure out what got you into this situation.
The habits that got you there are the ones that must be reversed in order to get you out of a bad credit rating.
You must make purchases on credit.
Then you must make all of your payments on time.
You need to pay off all of your debts consistently, not just for a couple of years.
It only takes one or two failures to pay on time to ruin your credit rating for years.
You need to avoid the risky activities that lead you into putting more money on your credit card each month than you earn.
In many cases you are reported the moment a business doesn't think you'll pay on time.
At that same moment your account may be sold to a collection agency, which will begin taking aggressive actions to intimidate you into paying off that debt before paying for anything else.
These collectors will continue to find ways to hurt your credit rating as long as you owe money.
You can't fix the credit rating you get until you come up with a way to erase your debts.
Start by spending less money than you make.
Even after you get your debt eliminated, you still have to build up your credit rating again.
You will need to use your credit cards on a regular basis.
But this time you must never be late making a payment and you should pay off your credit card in full every month.
If you don't have a credit card anymore, you will need to start with a secure credit card.
Showing you can use a secure credit card regularly and still make your payments regularly will build your credit rating back up to a level where you can get regular credit cards again.
As long as you continue to use credit responsibly your credit rating will remain solid.
If you want to get an elite credit rating, you may need to consult with a professional credit counselor or a financial advisor.