Millions of consumers throughout this country contend with the effects of having bad credit. Some are turned down for credit cards or car loans, others find out their applications for a new home loan have been rejected. If you are dealing with the restrictions that can result from having poor credit, you may already realize that your credit is in need of repair. These days, understanding what you can do to repair your credit score doesn't have to be frustrating or stressful, thanks the wealth of credit resources available to consumers.

Tips to Improve Your Credit Score

Credit scores are an important tool used by businesses and lenders to determine the likelihood that a borrower will repay a loan. Fortunately , these figures are not set in stone. there are many things you may be able to do to improve your credit score.

* Pay your bills on time - Your payment history makes up 35 percent of your credit score. A period of not making timely payments will cause your score to drop but since the effect of a late payment wanes over time, focusing on making all payments on time from now on will move your credit score in the right direction.

* Get current on missed payments - If payments are already past due, their impact on your credit rating will become increasingly more profound the more time they remain outstanding. A couple of 30 day late payments are defendable, but a single 90 day late payment can cause your score to come crashing down.

* Try to keep low balances on your credit cards - Outstanding debt accounts for 30 percent of your credit score. The closer you are to reaching the limit on your credit cards, the less stable your finances will look to be. Keeping credit card balances below 30 percent of the limit will make your utilization ratio look better which will be reflected positively in your credit score.

* Avoid shifting your debt between credit cards - Transferring debts to a low interest rate credit card is a good strategy when trying to whittle down debt, but constantly transferring balances between cards looks like you are robbing Peter to pay Paul instead of making your monthly payments.

* Carefully study loan or credit applications before accepting them - Some loans, including retail store lines of credit, are loaded with fine print and other strings attached that can end up causing big problems down the road. For example, some no payment, no interest financing programs offered by retailers include rates that can skyrocket if you are late on a single payment and clauses where you may still be responsible for interest accrued during the "no interest" period.

* Use your credit cards responsibly - Keeping balances low is a start, but you should also be careful to keep the number of cards you have in check, make all payments on time, occasionally use older cards, etc. For the most part, best practices for all credit accounts apply to credit cards as well but given how frequently people let their credit card spending get out of control, responsibly using credit cards warrants special mention.

Lastly, for people who need additional assistance addressing their bad credit, another excellent resource for consumers are professional credit repair services. Professionals can provide their valuable expertise on important matters like legally disputing the questionable negative items on your credit report and specific steps you can take in order to make the most of your credit.