If you are like most Americans, you are struggling with your monthly bills. More than 25 million people in the United States have information on their credit reports that is serious enough to bar them from obtaining loans with competitive terms. Other’s credit is so poor that they are unable to turn on utilities in their name or have a checking account.

Maybe your credit is not so bad. You have some late payments, but overall you pay your debts. Even in this situation, you spend thousands of dollars additional in interest fees as a result of your poor credit score.

Depending on your unique situation, there are methods to improve your credit score. If you have no unpaid obligations, a few late payments and seeking to improve your score overall, you can do the work yourself.

  • Pay down your credit cards – Paying off your installment accounts has an immediate positive impact on your credit score. The reason for this is because you are demonstrating to potential lenders that you can manage credit lines responsibility. The theory is that just because you have available credit, you do not need to use it.
  • If you do need to utilize your revolving charge accounts, instead of charging on one card, spread the same amount over several accounts. The reasoning here is that while you are using your credit lines, you are not at the limit for any card. This method is easy to manage as you can log onto your credit card company’s websites daily to track your charges and stay within your monthly budget.
  • Call your creditors and ask if they would consider removing the late payments from your credit file. If you have been current within the last 6 months and ask nicely, they have been known to grant this request, once.

If your credit report is way beyond this type of repair, your best option is to hire a professional to assist you with negotiating with the creditors. A professional can effectively communicate with the credit provider in a way that gets their attention. Credit repair companies take care of all the communication with the credit card companies. They are experts in their field and are generally very effective. You can also choose to hire a law firm specializing in credit repair. Either option will create a strategy based on your unique situation.