It’s easy to dismiss someone with poor credit as “irresponsible” or “deadbeat,” but bad credit can and does happen to nice people. You may find yourself in the same predicament with only one long-term illness, an unforeseen repair expenditure, or lost time at work. Finding effective credit history restoration procedures is also rather simple; all you need to know is what to do and what not to do.

Many people may encourage you to chop up your credit cards, and if you don’t have the discipline to keep your credit cards with accessible balances and not use them, this may be a smart alternative for you. Finally, you want to be in control of your finances, which is as vital (if not more so) as fretting about your credit score.

The percentage of available credit to credit limit is one aspect in your credit score. That means you have $1,300 in accessible credit if you have a single credit card with a $1,500 limit but a $200 outstanding. Your credit score will improve as a result of this. So, if your card has the same $1,500 limit and you owe $1,500, you are maxed out, which does not help your credit score.

Closing an account can lower your credit score because you won’t have the same ratio of available credit. Still, if you can’t resist the desire to use the card, it’s a tiny price to pay.

Another habit you should develop is checking your credit reports at least once a year. Experian, Equifax, and Trans Union are the three major credit bureaus. Don’t expect the information to be the same on all them; it won’t. If you find a mistake, notify the bureau in writing as soon as possible, along with any proof you need to support your claim. Your credit record must be amended within 30 days, which could result in an almost immediate boost in your credit score.

Because improving your credit score can take more than 30 days, you should get started right now. Don’t put off applying for a new vehicle loan or a new mortgage for another few months. If you go into your local bank with a good credit score, you will not only have an easier time getting accepted, but you will also be eligible for much lower interest rates, which will save you a lot of money over the life of the loan. Your monthly payments will also be less and easier to manage.

If you decide to use someone to assist you with your credit history restoration, be cautious about who you hire. Take the time to read the fine print to see what, if any, fees you will be charged for the help. Ask questions so you can make the best decision for you. Sometimes loan consolidation is a smart option, and sometimes it isn’t.