The content is accurate at the time of publication and is subject to change.

Having a bad credit report can be damaging to an individual in every way. People with a poor credit score cannot get loans, mortgages, insurance or even a good job. It is important to maintain a positive credit report, and improve your scores if you have missed a payment.

The credit crunch has affected many entrepreneurs and particularly following the recession people with bad credit have found it difficult to get finances to start their own business following a loss of employment. Even starting a bank account can be difficult with bad credit; however there are numerous agencies that are catering to the interests of people with bad credit. Getting started can be difficult if you have poor credit scores however once you start working your way out of it, it is still possible to improve your credit rating.

Many banks will refuse credit on account of having poor credit scores. When you apply for credit cards following your bad spell, choose carefully, do not try to apply for many or shop for credit as it can still affect your poor scores even more. If you have a savings account then you can still apply for a secured credit card. Using a prepaid credit card will not have much of an effect on the credit scores but a secured one where there is collateral in the form of a checking account to pay up the debt can be helpful.

You need to steer clear of damaging credit habits, do not spend overly and charge what you cannot afford. Cut down on your numerous spending habits and save as much as you can to pay up at least some part of what you owe. Get part-time jobs, any job you can find and settle your bills. During the rebuilding period, try to get a balance transfer done onto a single card with no fee for the transfer and low interest rates.

This will allow you to pay up what you owe and get some more time to do it. Those with bad credit history can still obtain a secured loan through certain creditors who cater to the needs, by using the loan you can pay up a large part of what you owe in one go and thus improve your score somewhat. There is also online application for many people with bad credit which allows for them to be approved faster after providing the necessary documentation. Debtors will also be able to work out a more flexible payment schedule if you approach them and negotiate.

Attending debt relief counseling will also enable you to work out your bad credit situation by listening to exerts who have been there and worked their way through it. Obtain all records pertinent and dispute any discrepancies. Make sure you have a thorough paper trial to work out your debts and solve the credit crunch situation. Do not ignore your bills, it is worse to not bother about it than to pay it late, call your creditors and work out things, because they would prefer you to pay than declare bankruptcy.