If you’ve gotten into a situation where your credit worthiness is damaged don’t worry, no matter how bad your credit score is there is always room to improve it. Below are some tips to start down the road of credit repair.   

1. Get your free credit report from AnnualCreditReport.com. Check it over carefully, is everything correct? If anything is inaccurate contact the credit bureau using these guidelines at the Federal Trade Commission (FTC) website correcting your credit report.

2. Pay all of your bills on time. Late payments negatively impact your credit score.  If you can not make payments contact the lender to make arrangements for a modified payment plan. Many lenders will work with you but you need to ask!

3. Pay off highest interest loans first. Focus the largest payment you can to reduce the highest interest rate and not necessarily the highest balance. While you want to be sure and make payments on every account, eliminating the highest interest rates will bring the total balance down faster.

3. Consider getting a secured credit card. A secured credit card requires a balance (often between $300 and $10,000) be deposited against the credit limit. Make payments each month to build a payment history. Many lenders will offer an unsecured credit card after a consumer shows a consistent payment history with a secured card.

4. If you have any, do not close old credit card accounts. Many people will tell you to close old accounts but part of you credit score history. Maintaining an old credit card even when it’s not in use will not hurt (and will probably improve) you credit score. Additionally closing an account will increase the percentage of available credit used. Creditors look at how much of a consumers available credit is use to determine risk. Someone with every account maxed out raises a red flag.

5. Watch out for scams, the credit repair market is full of scam artists offering instant credit repair and debt reduction. This is especially true of those charging a fee to eliminate your debt. Use the money to pay down your debt. Thoroughly check out any company before doing business with them. The old adage is still true, if it sounds too good to be true, it probably is.

The only thing that will repair bad credit is time and a consistent payment history.