If you have poor credit, you have probably noticed it can be difficult to obtain credit such as a catalogue, loan or a credit card. Your bad credit may seem to be holding you back in life.

Perhaps you want to buy a new home but cannot be approved for a mortgage. Maybe you need a new car but cannot find a car loan. Don’t worry there are some steps you can take to improve your credit score.

So, what can you possibly do to turn things around for your credit? The answer is:

By following these steps you will not only have less debt but your credit score will start climbing up from the bad credit category to higher levels like moderate risk level and finally into the good credit score category. Of course, this will take determination, but your bad credit can be turned around with just a little bit of effort.

The first part of the equation to improve your credit is to start making monthly payments on time. Regardless of your due date you need to make sure the payment is there beforehand. This will increase your credit score immediately with effects seen each month as payments are made on time. This is something you can do today to help increase your credit score and continue doing in order to really climb the credit score ladder. Once you have been approved with a retailer from our list of catalogues for bad credit, making regular repayments on time will give your credit rating a huge boost.

Credit counseling is another great option to help you learn how to manage credit and to un-learn your bad credit habits. When you work with a credit counselor you will see how important it is to have good credit. Find a not-for-profit credit counselor to help you learn how to handle the responsibility of credit and your new credit habits will help your score increase as well.

Another suggestion that will help you increase your credit score is to start paying off debt. The less debt to credit ratio you have the higher your credit score will be. So, start paying off those credit cards and stop using them to live above your means. Make a budget with your income and stick to it. That way, you will pay off your debt and enjoy a higher credit score.

You should also consider ordering a copy of your credit report. You can see exactly what creditors have recorded late payments from you. Look over your report carefully to look for any potential errors. There can be mistakes on your credit report. If you do find any errors, you will want to dispute them by writing the credit bureau and explaining why the information is inaccurate.

Negative information will stay on your credit report for several years usually up to seven. However, for some information there may be something you can do. If a past creditor reported that you had late payments, and your account has since been brought current and paid off, they may be willing to remove their negative information from your report. Contact the creditor to find out if they would be willing to do so. It certainly cannot hurt to ask.

If you find that you are late on any of your bills, get current right away. Late payments will adversely affect your credit. Once you bring all your accounts current, work hard to make sure it stays that way. Sometimes things happen in life and it is unavoidable to have problems paying your debts. If this ever occurs get in touch with your creditor immediately. They may be able to work out a payment plan for your while you are having a rough patch. This may be a way that they will work with you so that they do not report your account as being past due.

Do not over extend yourself when it comes to credit. If you have a high debt to income ratio, this will lower your credit score. Keep a low balance on your credit cards. Try to only utilise credit for things that are most important to you. Avoid taking any of your credit cards up to their credit limit. This can also lower your score if you have high balances on just a few accounts.

Time itself will also help your credit score. Make a commitment to better managing your finances staring now. Do not open credit account you dot need. In addition, do not apply for too much credit it a short amount of time, this can actually result in a lower credit score. Keep current with all of your credit and loan payments. In time, you will see an improvement in your credit score.

Finally, if you have really bad credit and collection agents calling your home on a daily basis then you need to take immediate action. Call your creditors and let them know you realize you are way behind on your payments, but you want to get ahead and ask if they have any special payment plans or programs to help you out. Most of them do and will be happy to help you out. Communication is the key and if you avoid your creditors you will have more problems than if you meet them head on and deal with your credit problems.