Bad Credit score: Don't feel stress, wake up to increase

Here are some steps for you to improve your credit score.

• Always pay your bills on time - your credit score is mostly based on delinquent payments and other collections that can definitely have negative effect on your credit score.
  
• Keep your balances on the down low (for credit cards) - high balances in your card can ruin your credit score. Always stay below your limits at around 30 %.
  
• Don't apply often for a new credit card - make sure you apply only as needed. If your goal is just to create a better credit mix, then you might want to think twice because it might not do your credit score any good. Applications will show up on your credit report as inquiries, telling lenders that you may have a new debt.
  
• Finish off all your debts - instead of just moving your debt around, try paying them off as fast as possible. Don't use unused cards to as a short-term strategy to boost your score.
  
• Protect yourself from identity theft - don't let fraud and credit theft get to you. Responsibility is the key; pay all your bills on time and make sure you pay them on time no matter how small your debt is. What you have to do is minimise your outstanding debt and as much as possible, avoid extending and extending because it will ruin your credibility and score as well.

These are the common things that you should do to improve your score. If you are trying to boost it up, be patient about it as it really takes up some time and that there is no quick fix for bad credit scores. Records such as late payments, bankruptcy and other inquiries will remain on your credit report for quite some time so it's best to do a credit check regularly.

The one thing that you should never forget about your credit is that it is based entirely on the information found in one's credit report. Any change in your credit report will also affect the score. Closing extra accounts will lower the number of revolving accounts but it will also increase the available amount in your credit and this will also give you a higher utilisation rate. Be wary that delinquencies can remain in your report for up to seven years and bankruptcies up to 10- 15 years so it's best to take care of your credit score from an early point.