If you’re burdened by poor credit or a low credit score, there’s no reason to feel helpless. You can improve your credit history by taking positive steps right now. What should you do? Here are the steps on how to raise your credit score on your own:

Obtain a copy of your credit report. Check your credit report for possible errors. The reason for your low credit score could be false charges or negative remarks. If any detail in your credit report is incorrect, send a letter of dispute to the 3 major credit bureaus right away.

Point out the incorrect items in your report and send a copy in your letter. Then, write a short and clear explanation as to why you think these items are false. You can also include receipts or documents that support your claim for a speedier investigation on your report.

Lower your debt to credit ratio. A lower debt to credit ratio sends out a good impression to lenders. Avoid maximizing the use of your credit limit even if your credit card offers a very low interest rate. Ideally, you should leave at least 30% of your credit limit free of use to maintain a good to excellent credit score.

Talk to your creditors. If you’re stuck with too many bills, the best way to deal with the problem is talk with your creditors and work out a negotiation. You need to be honest with your creditors and let them know that your present financial situation makes it difficult for you to keep up with your payments.
Express your desire to take on your responsibility to make repayments.
You may negotiate for a settlement, ask for an adjustment in your monthly fees, or request that some of your fees be waived. Most creditors would be willing to modify your repayment terms to give you a chance to recover. However, before you meet with creditors, make sure that you’re prepared and that your requests are reasonable.

Create a repayment plan. To really improve bad credit history and raise a low credit score, you need to pay off all your existing charges. Therefore, an effective repayment plan is a must. Make sure that your monthly income would be able to cover for all your expenses, especially your debt repayments. Paying your creditors should be your number one priority. This may mean giving up on some of your personal expenses or luxuries so you can use your money to pay your creditors first.

Check your accounts regularly. Monitor all your accounts to make sure that you’re keeping up with your payment schedules. For credit card debts, consider transferring your balances to a 0% APR balance transfer credit card. The sooner you can pay off all your credit card debts, the sooner you can rebuild your credit history. Do your best to complete paying off your balances within the zero interest period. By not paying the APR, you can concentrate on paying only your original charges, without the extra interest.

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