A bad credit score refers to a person’s inability to repay a debt (a loan, credit score, etc) on time.

Check for dispute and inaccuracies
The first and most obvious step to credit score management is to get a copy of one’s credit report and check it for any factual errors or inaccuracies. If there are any mistakes, they should be addressed and disputed with the relevant institutions. Correcting these inaccuracies would naturally lead to a better credit rating. Sometimes, one’s credit report may also reveal identity theft or fraud. This should also be reported and one should take measures to protect themselves in the future.

Be prompt with payments
While one might pay a bill or installments due a few days late because of unavoidable circumstances, it has a negative impact on the credit score. It is important to set reminders for payments or even automatic payments on a set date of the month if one’s bank account has the feature. Making regular and prompt payments every month is a good way to slowly repair a bad credit score. It is a good idea to always pay loans which have a higher interest sooner so that the sum doesn’t affect you negatively later.

Reduce the number of default accounts
Defaulting on multiple accounts has a worse impact than defaulting on one. If one is extremely short of funds, it is a good strategy to default on the largest payment and continue regular payments of the smaller installments. This will help reduce the ill effect on the credit score.

Get new credit
Getting access to new credit, even if it requires a larger than normal security deposit, is a good way to build better credit behavior. As time passes, more recent financial behavior gets a higher weight than older behavior.

Keep the outstanding amount low on the credit card
One has to spend very cautiously and maintain a lower credit card balance as a large amount can adversely impact a credit score.

Give it time
Recovering from a foreclosure or bankruptcy is a long process. Such events linger on one’s credit history for years. However, maintaining regular payments on other outstanding credit over a few years can help improve one’s credit rating.

Change the status of your accounts
A history of bad payments cannot be repaired instantly. However, if one makes payment of outstanding amounts to change the status of the account, it will help their bad credit score.

Be better prepared
If one’s circumstances permit, maintaining a small savings fund that will help tide over monthly payments in case of a cash crunch is a good idea to prevent damage to one’s credit rating. This is the most helpful in case of an unforeseen shortage of cash.

Choose cards wisely
Credit card companies offer a wide variety of cards with a combination of features, such as balance transfers, travel cash back, etc. It is good to use cards that suit them the best. This also helps one track the amount spent on different areas which can then help inculcate a healthier spending habit. This will not only improve one’s bad credit score but will also prepare them for the future.