A credit score helps in determining creditworthiness. It is a three-digit score ranging from 300 to 850. Scores nearer to 850 are considered as good credit scores, and people with good credit scores can get loans at good interest rates. Scores nearer to 300 are considered bad credit scores. Lower the score, the more difficult it is to get a loan. Here is how you can come out from under a bad credit score:

Avoid late payments

This is one of the most basic tips that can help you come out of a bad credit score. Delayed bill payments can negatively impact credit scores. Credit score experts suggest that bill payments contribute nearly 35% of credit score. On-time bill payments assure lenders that you are serious and proactive when it comes to managing finances. Set reminders or enroll for automatic payments so that you don’t have to log in to the bank portal or visit the bank to send payments.

Pay twice in a month

This can only be helpful if you have saved enough money and can cut down on miscellaneous expenses. Make half of the payment two weeks before the due date of the bill, and then pay the remaining amount one day before the due date of the bill. This will help you lower the credit utilization and add points to your credit score.

Keep lower credit limits

Higher credit limits can tempt you to buy more. The more you buy using your credit card, the more difficult it might get when it comes to paying the bills. Late or failure of bill payments accumulates interest on the bill. This can slice off numbers from your credit score. Having a credit card with lower credit limits makes it easy to manage bill payments and improve credit scores.

Keep unused credit cards operational

Although you may no longer use them, keeping unused credit cards operational improves the age of your credit score. Longer the credit history, the better the chances of improving the credit score. If you are really looking to close credit accounts, close the ones that are opened recently. And if you are using multiple credit cards and have bills lined up, pay the ones that are closer to the credit limit, this will help take off some load from your credit score and reduce your credit utilization rate.

Take a look at your credit score

Typically, asking for a credit report can impact your credit score. However, you are entitled to one free credit report. Utilize that one complimentary credit score check facilitated by the three credit reporting agencies: TransUnion, Equifax, and Experian. Check the credit report carefully and check for any discrepancies and raise the same to the agency. This quick credit fix can help you improve your credit score.

Call the creditor

And if all else fails, contact your creditor and let them know you are running behind your bill payments. They might help you devise payment plans that make it easy to pay off outstanding bills and improve your credit score.