So you want to know how to clear bad credit? It's not easy, it will take some time. Depending on how poor your credit is, it could take from some months to some years. But I'm not daunting you, I'm here to give you tips. You see, a poor credit is a problem to begin with in everyone's financial life. It limits you in everything you do. If you have bad credit, it's difficult to get specific jobs that deal with handling finances. Landlords or apartment owners also weigh your credit score to check if you can pay your rent or not. Last but not the least, there are loans of different types which are simply difficult to obtain if you have poor credit. Lenders are not likely to approve you of loans with the smallest interest rates if you are not a great credit risk.

Now they're said, you need to know how to clear bad credit. So how can you do that? Here are five of the things you should do.

1. To fix bad credit, one of the first things to do is to pay off your debt, both new and old. Credit cards, utility bills, loans, and everything that requires you to pay monthly, those debts get bigger if you don't pay monthly because of the interest rates and penalty fees. These additional fees are what make your monthly bills bigger, making it hard for you to pay off your debt.

As a general rule, always pay off more than the minimum amount required to show lenders you are more than capable of handling your debt.

2. Holding too much credit lines is one of the biggest sources of debt. Even if you are paying them off now, lenders know that you are going to have a difficult time paying them off later should you encounter a life crisis like sudden illness, which demand a serious amount of money.

It is therefore a good idea if you will only stick to one or two credit cards and one or two major loans to make sure you can handle your debt. Too many of them will give you a hard time paying them off later, as previously mentioned. Use your credit cards only during emergency purposes. Do not open credit cards after the next because it will also show lenders you are being financially irresponsible and will cause your credit score to drop.

3. Make sure you do not spend more than half of the credit you have. If your credit card has a limit or credit of $1,000 it is therefore much better if your debt is at least $500 or much lower than that. What you should show to your lenders is that you can keep your debt as small as possible because it shows you are financially responsible.

4. Aside from debt, there are other things to avoid if you want to improve your bad credit. These include bankruptcy, tax liens, and collections.

5. Lenders like to see how good you are at handling various types of credit. Which is why it is recommended that you have a personal credit like credit cards and major loans like a house loan in your name and see to it you can pay off the monthly with the required amount and promptly.

You can delete poor credit using these tips, but don't expect to see the results very quickly. Some may take years, others take months. But keep doing what you can to improve your credit because in the end you will see the results of your efforts and be rewarded for them.