How to Fix Bad Credit in Three Steps

No one wants to deal with bad credit if possible. Not only does a poor credit rating get in the way of your mobile phone contract application but it eventually affects all other aspects of your finances like debt, loan applications and more. Considering the consequences, there's really only one best way to deal with bad credit. Fix it. To help you do just that, here are three simple tips you can get started with:

  • Check Credit History and Report Errors
  • One of the first things you need to do to fix bad credit is pretty basic but many still fail to do it. Before kicking off any drastic changes on your finances and habits, you must first check your credit history. Check for any possible errors and discrepancies if there are any. While credit agencies rarely commit mistakes, it still happens so it's best to cover all your bases.

    If you see any errors, report it immediately to the appropriate agencies so they can fix it and have the chances reflected on your new credit report. For a free credit report, go to

  • Pay Your Bills on Time and Consistently
  • The next step is to pay your bills on time. Now, this step is easier said than done. After all, you wouldn't have gotten a bad credit score in the first place if you were a responsible payer. In any case, the fact remains that payment history constitutes 35% of your credit report. This means that by simply striving to pay your bills on time and consistently for at least 12 months, you are sure to see a significant improvement on your credit score as a result of your efforts.

    To make it easier to pay bills on time, there a couple of things you can. You can set up calendar reminders for important due dates, for example. You can also arrange automatic debit deductions for bills with fixed monthly fees.

  • Pay Off your Debts Staring with High Interest Credit Cards
  • Other than your payment history, one of the other major factors that affect your credit score is the amount of debt you owe especially with credit cards. To fix your bad credit and improve your rating quickly, the next best step you can do is reduce the amount of debt you owe. You can do this by focusing first on paying off credit cards with the highest interest rates. You should also try to minimize your credit card use while you’re in the process of boosting your credit score.