CHESSNOID

So the economy is in an unofficial recession and there is no credit card bailout coming from the government. This means that people who can’t pay their bills and have defaulted on the credit accounts now have bad credit. Bad credit will stay on your credit report for 7 years until the date of the actual delinquency.

That may be good or bad depending on how long you haven’t paid your credit card. Depending on how much bad credit you have, it will take some effort to build good credit. It may take time, but it is actually easy to get perfect credit if you make an effort.

Assuming you have 5 credit card charge offs and nothing else on your credit report, you will want to counter it with 5 good credit accounts. Obviously, no one will give you an unsecured credit card with that type of credit. What you want to do is get a secured credit card that reports on all 3 credit reports.

If you have the funds and ability to get 5 secured credit cards now, then that will counter the 5 bad charge offs. Basically, it will cancel the 5 bad accounts. however, that doesn’t mean you will start getting offers for unsecured credit cards. This action will only increase your credit score. It will take about 2 years or 24 monthly “on time” payments to build decent credit.

Again, as you build your credit some of the bad credit will fall off your credit report after 7 years or if you dispute them early for inaccuracies, then they may actually be removed faster.

The first step you want to take from going to bad credit to good credit is to find out how your credit looks like and what your actual credit scores are now. Do this once a year so you know where you are starting from. The second step is to open up an unsecured credit card and try to establish a perfect 24 monthly payment record with them.