General Question

babygalll's avatar

Good and Bad Credit.

Asked by babygalll (2737points) April 22nd, 2008

If someone has bad credit, but pays off their cards completely. Will they be able to have good credit again?

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7 Answers

nikipedia's avatar

Yes, in seven years.

Mangus's avatar

I disagree with nikipedia. The answer is “yes, in less than 7 years”. 7 years is the time-frame to have some bankruptcies expunged from a credit report. “Good” or “Bad” credit refers to a numerical score arrived at by a bunch of math that takes many things into account, including whether you pay your revolving credit accounts on time. I’ve recently read in several places that one can have a “decent” credit rating within two years after a bankruptcy, if one is very careful and strategic about rebuilding one’s score.

On-time payment, using credit and paying it off, regular payments on long-term loans (school, mortage, etc.) are all good ways to improve your credit score. If you have bad credit, and want better credit, but don’t have a card, google “secured credit card”. Using one of those will help.

gooch's avatar

I agree with Mangus Also never charge more than half the limit of your cards.

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shirleylopez's avatar

Yes, Mangus is correct. You can start rebuilding your credit score with secured credit card or prepaid credit card. Others suggest store credit cards, but I think the interest rates are high and the usage is very limited. Pay total amount monthly and not just the minimum amount.

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