 TITLE: Why No Credit Is Better Than Bad Credit CONTENT: How to Improve Your Bad Credit\n------------------------------\nTo overcome past credit problems, you'll need to know what exactly you must correct. Obtain a copy of your credit report and read it carefully. Identify areas of concern, then tackle any problems. You can't remove accurate and timely information from your credit report, but you can change the future.\n*   **Pay all bills on time.** A slew of missed payments will definitely drag down your credit. From this moment forward, send all payments on time. If you stopped using credit cards and don't owe any money, start charging again in small increments. Begin charging an affordable expense, such as a monthly subscription, and pay it off each month. The more on-time payments you have on your credit report, the better, since payment history is the most important factor in your credit score calculation.\n*   **Keep balances low.** Your credit utilization rate, or how much available credit you're using, is another important factor affecting your credit scores. Keep credit card debt well below 30% of your credit limit. Eventually consider adding more credit cards to your portfolio and keep those lines open while using the cards responsibly. Doing so will help keep your utilization low and may cause your credit scores to escalate.\n*   **Pay off any unsettled collection accounts.** You can't remove evidence that a debt went into collections, but you can pay it off. A satisfied debt always looks better than one that is outstanding, so delete it so it shows as paid in full.\nIf you filed for bankruptcy, you will have to wait it out. A Chapter 7 will appear on your report for 10 years, and a Chapter 13 will stay for seven. During this time, add positive activity to your reports using the strategies above to offset the damage. The same rules for establishing good credit apply: Get a healthy mix of loans and credit cards, use them frequently, pay on time and maintain low balances.\nWhether you're establishing credit or dealing with damaged credit, take advantage of an opportunity to add your utility and cellphone accounts to your credit reports with Experian Boost™† . The free service offers an easy way to make sure that on-time payments work in your favor. Combined with other positive credit habits, Experian Boost can help you establish credit or improve bad credit. END