How to build a Bad Credit Score

How Bad Credit Score affects your borrowing power and the offers you get from Credit Card companies and banks.

Bad Credit

Well any thing below 550 is bad credit score and people having this score will have bad credit ratings from credit bureaus. One can have bad credit score rating due to may factors. First young college students start with no credit and generally fall in this category. Some body has been irresponsible in dealing with his bills and not paying timely manner to lenders for borrowed money. Missed few payments or defaulted on home loan or on auto loan. All these are reason why person can have bad credit ratings.

Building credit score is painful process and it takes couple of years to reestablish the good credit with lenders and credit reporting agencies. There are also credit counseling organizations, which help people with bad credit to improve credit rating. Some of these organizations help in consolidating their debt intone debt at lower interest rates.

With honest and correct efforts in right direction things starts improving. With in two to three years of time one can repair bad credit into good credit. It is advisable to check at least once in year your credit report and scan for any wrong information reported against your name. Some time wrong transaction gets added against your name and some of those can really bring down your credit score. Any discrepancies found in credit report should be immediately informed to credit agencies for correction.

Consumers should report to credit bureaus for any wrong information reported against their name. The process is simple, write on paper the details of account and send it to all three credit bureaus. Usually Credit bureaus respond to you with in one week to one month and they will notify you about their decision. Most of the time decision is in favor of consumer.

Type of Credit Rating

Excellent Credit: Above 770 – 850

Good Credit: Above 700 – 700

Fair Credit: 600 – 700

Bad Credit: Below -550

No Credit

How to contact credit reporting companies

Trans Union - Consumer Disclosure Center

Address: P.O. Box 1000

City: Chester, PA 19022

web Address: http://www.transunion.com

Contact Number: (800) 916-8800 or (800) 888-4213



Equifax Address: P.O. Box 105873

City: Atlanta, GA 30348

web address: http://www.equifax.com

Phone Number: (800) 685-1111



Experian (formerly it was called TRW)

Address: P.O. Box 2104

City: Allen, TX 75013-2104

Web Address: http://www.experian.com

Phone Number: (888) 397-3742