Bad credit scores are just what it sounds like; bad!

It is not a desirable thing to have your unpaid bills pile up as it will subsequently take its toll on your happiness and hence the quality of your life.

Your FICO score or credit score follows you like a shadow throughout your life. Whatever you do that involves paying bills with your credit card or getting loans reflects on your credit score either positively or negatively.

Borrowing money to settle most outstanding bills often incur some rates, which are always higher for customers with a low or bad credit score. A credit score is a number between 300 and 850 and a bad credit score ranges between 300 to 629 points.

If you are a beginner to credit card usage and happen to find yourself in the mess of bad credit, here are some guidelines that will help you manage and successfully repair your credit score.

Pay attention to your payment history

Your payment history makes up the largest proportion and gathers the most significant number of points on your credit score. The quickest way to destroy your credit score is to have reduced points on payment history.

When you obtain loans, you need to pay back as at when due and in full. Failure to do so will take points from your payment history, which has the largest impact on your credit score.

 Check your credit statement thoroughly

Your creditors may have made one or two errors in your credit report which could be affecting your score negatively. When you do a thorough check and find errors, dispute them. We are not saying these credit report errors are common, but they do happen sometimes.

Once you get your report and discover a mistake, have a copy that highlights the error and of course any other copy of your proof, like bank account details. Credit score calculation firms will do nothing without proof!

You can write the company through a letter, certified mail or online. Ensure you keep a copy for yourself and await your reply after thirty days.

Do not spend more than you can afford.

After a thorough check and cleanup have been done on your credit report, ensure that you do not spend more than you can afford each month.

You can find out how much you make in a year by quickly reviewing your tax returns for the previous 2 or more years.

Next is to ascertain your regular monthly expenses and your monthly spending habits. Subtract your regular monthly expenses from your monthly income and try not to live above the difference monthly, by cutting down on every other expense.

Do not get a new credit account

If your current credit score is messed up, do not fall for the seductive option of getting a new credit card no matter how sweet a deal it sounds. Creating a new account gives rise to ‘inquiry’ from credit companies.

If you have too many accounts opened within the space of two years, your already bad credit score will only continue to decline.

In conclusion, a bad credit score takes quite some time to improve, months and even a few years but if you put in consistent effort, it is worth the stress in the long run.