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Bad credit can your life and budget in many ways, including:

  • Making it difficult or impossible to get a loan
  • Higher rates and worse terms on loans you can qualify for
  • Trouble renting an apartment
  • Trouble getting a job, or security clearance
  • Trouble qualifying for the best utility choice and rates
  • Higher insurance premiums


One of the easiest ways you can improve your credit score fast is by paying all your bills on time every month. In reality, payment history is probably the main factor reviewed by the major credit reporting agencies when rating your credit. Late payment or delinquent (if even just by a few days) can have a major negative effect on your overall credit rating. Therefore, it is critical to keep up a good payment history on all your financial accounts to avoid these creditors from reporting you, and future creditors from deeming you as too much of a risk. Here are some tips to help you improve your credit score:

Many consumers believe that even if they pay their bills late, that the amount they owe on that bill to pay will go down. However, this is simply not true and in reality if you continue to be late then the amount that remains on that debt will increase as late fees are added to your balance owed.

It is very important to maintain a good payment history, especially if you want to know how to improve your credit scores. The more often you are late on your payments and not current on them the worse your overall credit scores will become. So it is very important for you to be on time with all of your monthly payments if you want to know how to improve your FICO scores.

The following are tips to make sure you do this effectively:

First, you should look over all your active credit accounts. You need to review all the accounts with the following purpose in mind: Do you have unnecessary balances because you just use one or two of them for the various bills that you get each month? Are there multiple overdrafts on the accounts as well as charges from charge offs and fees that were made to your creditors? If you answered yes to all of these questions then you need to eliminate these accounts. Only keep the accounts that are absolutely necessary to paying your monthly bills.

Now take a look at your current credit report to see what is going on with your overall score. The accounts that are on your active credit report should show as active. So, if there are multiple accounts that are marked as “paid” but they are actually still sitting there with “pending” status then you need to contact the lender and work out an agreement to have the account closed. This will go a long way in improving your overall credit scores because it will remove the accounts from your active credit report.

Another important step to take in learning how to improve your credit score is to make sure that you are not charging more than you need from your current credit cards. Available credit from existing lines of credit or credit cards (sometimes called “credit utilization rate”) is another critical factor in your credit score. Most people tend to use up their credit cards when they run out of cash or need to make a purchase. Make sure that you do not spend more than 30% of your available credit on new credit cards. Also make sure that you do not cancel your existing credit cards once you are done using them. This will help you avoid having your available credit used up faster than you planned on.

One last tip for those that already have low credit scores. You can always open a new credit file if you are unable to get any new accounts opened. This can be done by getting copies of your existing credit reports and checking them against your FICO scores. Once you find out the score that is attached to that particular credit file you can go out and apply for new accounts. Make sure that when you do this that you maintain a good balance on all of your new accounts.

As you can see, it is possible to improve your credit score by controlling some of the risk factors associated with having a good credit history. You need to make sure that you pay your bills on time and do not overextend yourself financially. This will help to keep your credit report in good standing. If you find that you need to change your behaviors in any way then do so. This may mean that you need to cut back on the things that you are spending money on or even consider getting a new job.