Having bad credit is just another term saying you have poor credit. It all looks the same no matter which way you look at it. No company is going to give you a line of credit if you have poor or bad credit. You apply for credit cards or loans you will be denied. Every bank you go to will turn you down. Some banks and credit unions won't even let you open a savings account if you have a credit score under a certain amount. If by chance you do find an institution to loan you money your interest rate will be through the roof. That is how they protect themselves is raising the interest rate. Then you will be paying interest alone for over half your payments before any even start paying on the principal of your loan.

Now let's start to repair your credit. You will want to get a prepaid credit card. Have a $250 deposit put on this. Now every month make a little more than your payment and pay it a week before it is due. Charge only small amounts every month that you know you can pay off. Every payday I always buy cigarettes and fill my car, so I charged this and then the next week I sent in the money out of my paycheck. I did this for a year and my credit score started going up faster than I expected.

Another way to get credit is to go to a rent to own place and purchase a small appliance or a few piece of furniture. Pay these the same way, more than the monthly payment and a week sooner than when it is due. Most of these pay by the week but try and have it set up by the month if you can. Try not to spend too much so you know you can afford the payment every month. The only downfall to rent to own is they have a higher interest no matter what your credit is. The good thing for people with bad credit, they don't do credit checks. You are always approved.

Just remember one late payment will destroy 20 payments made on time. So make sure you can afford to make your payments no matter if it is rent or your utilities or just a cell phone bill. Once you get on the right track to a great payment history, you do not want to destroy it.

If your bad credit is a mountain of debt and not just a way to increase your score then you might want to look into a credit repair company. They can help you get your bills consolidated and even talk to your creditors in reducing your debt to make it more manageable by getting rid of the interest. Then after these are paid, you can start to rebuild by doing the top things we spoke of first.

Once you get your credit rebuilt, you will feel so much better and be able to afford things like a home or a car. Just don't get over your head, keep it manageable.