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There are three ways to repair your credit.  These are:

1. Repairing the bad credit you already have
2. Building better credit by borrowing and paying for things in a sensible way
3. Waiting for your bad credit to pass

Repairing your credit is surprisingly easy to do yourself.  The best and cheapest way is to request a credit report from the three big credit companies. They are Experian, Equifax, and TransUnion. Once you receive your credit report, go through the items that you think are unfair or incorrect.  Write a letter explaining why these items are incorrect or unfair.  The lending companies then have 30 days to respond to your disputes.  If in this time they do not respond then it is possible the bad credit will be removed from your records.  It may not be this simple for all your bad credit marks on your credit report, but keep in mind sometimes bad marks are put on there by mistake.

Building better credit is also very easy.  All you have to do is to take out a loan and pay it back regularly until it is paid off.  This builds confidence in your lenders that you are a sensible consumer.  This can counterbalance the bad credit and will help a lot, especially when people have very little credit history.  It may be as simple as taking out a few small loans and paying them back in a short timescale.  All you have to remember that should you start missing payments on loan repayments, this will create bad marks against your credit record, so don’t borrow unless you are confident you can pay it back.

Waiting for your bad credit history to pass is by far the easiest way, but also the most unproductive.  Bad credit takes about seven years to clear.  Once your credit history has been taken off your record, you’ll have to start all over again.

So it is worthwhile to both repair your credit and build better credit because seven years is a long time to wait.