Let me share to you some stories about credit ratings. This might give you some information on how to deal with it if ever you would experience same thing with my friends.
I have a friend who had a bad credit rating story based on her phone bill. She did not pay her credit due on time. Eventually, the service was disconnected. With this, and other minor credit infractions degraded her name at a very young age. She could not borrow anymore. She had to save money on her own and purchase everything through cash. I could say that having a bad credit can be a good thing to her because she does not have to worry about paying her dues on time.
On the other hand, I also have a friend who started with good credit rating story. She got several credit cards. Not only that, for she was able to get snowmobiles, finance cars, etc. as well. As time passed by, she went into a deeper debt and incurred about a thousand dollars debt.
Of course, who would want to pay as much as it costs? It was too much to deal with. She eventually thought of declaring bankruptcy. However, she stopped paying on the credit cards or else the credit card companies would not believe that she was financially unstable. Through this, the credit card companies were able to reduce her balance due. She wrote a letter explaining the difficult situation she was in. She got a home equity loan so that she could pay the remaining balances quickly.
In the end, her bad credit rating was not as bad as you think. She did rebuild her credit score over time as well as her credit balances. But then, she had to undergo a stressful life again in paying her credit dues on time.
Now, do you think that bad credit is actually good? Well, it is not bad at all. But then, I am not saying that you should purposely get a bad credit if you do not want to end up getting up bad credit credit cards.
Pay everything with cash if possible. Pay your credit balances most especially with the higher interest first. Once you have paid off all your debts, try saving money to put up your own business. Avoid getting credit cards for bad credits too.