If you have a bad credit score, you need to improve it. Not doing so affects your chance of getting credit easily. However, if you are keen on changing that, here are a few tips.

Check your credit report
Before you decide to improve your bad credit score, you need to check your credit report. Consider getting a copy of your credit report and check it thoroughly to ensure it has accurate information about your credit history. Most importantly, check for errors in the reports.

In case of any errors or omissions, contact the credit bureau and request them to change the report. A wrong report can drastically affect your credit score.

Timely repayment is key
Whether you have an outstanding loan or credit card bills to pay, make sure you repay them on time. The key to improving a bad credit score is to start paying bills on time. Cut and budget your expenses to ensure you have the money to clear all bills without defaulting.

Consider a debt consolidation plan to help you clear outstanding debts. It helps you get over your debt problem and improves your score in a few months.

Reduce your overall debt
Your overall debt includes all loans and credit card payments. Ensure your debt remains as low as possible. Higher debt can affect your credit score, so try to avoid having multiple debts.

Utilize credit optimally
You do not have to utilize all your credit; it is ideal to utilize 10% of your credit limit. This ensures discipline and helps with repayment. If you want to improve your credit score, follow this strictly. Avoid utilizing more than 30% of your credit.

Time new credit applications
Each time you apply for credit, the lender/agency will carry out a hard check on your credit score. This would reflect on your credit report and overall score. Try to time new credit applications to avoid too many new credit applications.

Too many new credit applications can create an impression that you are desperate to get credit.

Pay more than the minimum due
Most credit accounts will specify a minimum due amount to be paid. Remember that if you pay more, your rate of interest reduces. It also helps you improve your credit score. Try to repay as much as you can to keep your debts low.

Avoid closing unused accounts
If you don’t use credit accounts like loans or cards, avoid closing them unless essential. The credit length and age of credit affect your credit score. Having old credit accounts, even if unused, can help boost your credit score.