A bad credit score can hold you back. Take control and fix your credit score.

Having a bad credit score can prevent you from doing many things, such as qualifying for an apartment rental or obtaining a loan. You also must bear the burden of living with financial problems, which can be stressful. The good news is, you can start improving your credit score right away. With a little hard work and dedication, you can get a good score again.

Your Credit Report

An important first step is to find a copy of your credit report, which you can track down online. Your credit report will let you know exactly what your credit score is right now. You can also see on the report exactly what each of your outstanding debts are, and what old debts are dragging you down. Once you know what your credit report says, you can take the proper action.

Pay Your Bills

One commonly recommended method for fixing a bad credit score is simply to start paying bills on time. Pay all of your bills, whether they are loan payments, credit cards or utility bills, in full and on time. This will look great for your financial record, and your credit score will begin to improve.

Keep Accounts in Good Standing

Keep any bank accounts that you have in good standing. Never allow your accounts to be negative, as this also reflects very poorly on your credit score. If for some reason you don’t have a bank account, open one if you are able, and keep money in it at all times.

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If you have been able to pay off any credit cards in full, keep one or two of those accounts open and in good standing. Qualifying for credit and maintaining good account standing will help boost your credit score. Many credit card companies will automatically close inactive accounts, so use these cards once a month for a regular purchase, such as food or fuel, and pay the balance in full each month.

Get on a Budget–and Stick to It!

Avoid further debt and other credit problems by putting yourself on a strict budget, and sticking to it until your credit score has improved. Always pay off all of your bills before using money for any unnecessary purchases. Try to avoid taking out any additional loans or opening additional lines of credit, as this is just adding to your debt problem. Avoid temptation, or you could be in debt and have a bad credit score for a long time.

© 2010 Beth Wankel

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