Alright, so you have bad credit? Now what are you going to do about it? The options are simple… you can repair it or you can not repair it. Easy enough, right?

Having poor credit can get in the way of many things… buying a house, renting an apartment or even getting a cell phone or cable television. Also, having bad credit can be expensive. Even if a lender is willing to extend you credit, they’ll likely apply an interest rate that is 2 or 3 times the norm. Since poor credit can affect a person’s life is so many ways, most people choose to fix it.

But rebuilding credit is difficult and can take a long time. The reason it can take long is because negative items can remain on a credit report for nearly 7 to 10 years. And it can be difficult because your credit score is based on a very complicated formula which takes more into account than whether you have been paying your bills on time for the past 12 months.

So what can you do to boost your credit score?

First, you have to demonstrate that you are credit worthy. You can start by paying all of your bills on time. You can also try to pay down old collection accounts. However, this may not help your credit score. Old debt is not as a big of a factor on your credit score than recent debt. But paying off old debt can suggest to a potential lender that you are serious about righting your financial wrongs.

Getting a new credit card is another thing you can do. If you open a new account and use it wisely, this shows that you can now handle credit more responsibly. But… and this is a BIG but… it is hard for people with bad credit to get approved for a new credit account.

You can start slowly by opting for a gas or department store card. These are easier to get than the major credit cards. However, these cards have very limited use.

Another option is to apply for a secured credit card. Generally, these cards have a Visa or MasterCard logo so you can use them anywhere. However, although these are called credit cards, they typically work like debit cards… (plus they have a bunch of fees). The limit on a secured card is based on the amount that you have in a deposit account. You can usually charge up to half of what is on deposit.

A final option is applying for a credit card that is specially intended for people with bad credit, such as the Tribute and First Savings cards.

The Horizon Gold card is another one of these so called bad credit credit cards. Approval is virtually guaranteed. They’ll report your history to the three major credit bureaus, TransUnion, Experian and Equifax. There is also a monthly maintenance fee that can range from $15 to $21 dollars. But the thing that is different about this card… there is no Visa or MasterCard and it can only be used to make purchases at the Horizon website.

And just as with other sub prime credit cards… cardholders have many complaints about the Horizon Gold card.

Rebuilding credit can be daunting. However, don’t be deceived into trying something that can make the situation worse. Learn what about what will and what will not improve your credit score. Then use that new found knowledge to rebuild your credit.