Your credit score is a key indicator of your credit worthiness and will impact your ability to obtain loans as well as the interest rate you will be offered. If you find your credit score is low or has gone down since you last checked, there are steps you can take to improve it.

Begin by requesting a copy of your credit report. Federal law provides you the right to receive a free copy of your credit report annually from the three national credit bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com.

After receiving your reports, thoroughly review them for any errors, such as outdated information, mistaken or merged accounts with similar names or addresses, and clerical errors that could be hurting your credit score.  If you detect an error on your credit report, you can dispute the error by writing the credit reporting company what you believe is wrong, why, and include copies of documents that support your dispute. Request that the information be removed or corrected and enclose the section of your credit report that contains the disputed information. You may want to send your letter by certified mail and request a return receipt, so that you will have a record that your letter was received.

If your credit report is accurate and your credit score is below what is generally considered an average credit score, 620 to 679, you will need to repair your credit. One way to do this is to consistently make payments on time.  If you have a credit card it is imperative to show the credit bureaus that you have a history of paying on time.  Also, pay down as much of your outstanding balance as possible. Your credit score is partially based off the total amount of credit that you have.

If you do not have a credit card or cannot obtain a credit card, you could pursue a secured credit card which is like a regular credit card except it uses your bank account as collateral.  Theoretically, you can charge up to the amount in your bank account.  This will help rebuild your credit as you pay off your bill each month.  It shows that you are managing your credit responsibility.