Today, we’ll show you a number of different ways you can improve your credit. You’ve probably heard of FICO scores, which are the way credit bureaus measure your credit and are a key factor in how home loan lenders set interest rates. A lower interest rate could drop your monthly mortgage payment significantly and could save you of thousands of dollars over time, so it’s important to improve your credit rating as much as possible. How do you do that? Here are five steps you can take right away.

• One: Get a free copy of your credit report online. Review the information to see how timely you’ve been on your payments: credit cards, student loans, utility bills, mortgage payments, car loans, and department store cards.T
• Two: Set up a payment schedule to avoid any more late or missed payments.
• Three: Make more than the minimum payment on each credit card.
• Four: Close all credit cards you don’t need, and don’t apply for more cards just because they’re offered to you.
• Finally: Work to pay off debt. Don’t keep bouncing your balances from one credit card to another. If you’re a homeowner, think about using the equity in your house to get a debt consolidation loan.

Remember, the three major reporting bureaus update your credit report constantly, so every positive move you make to improve your credit shows how responsible you really are, and helps build a better credit rating. Here’s another thing: You don’t have to tackle credit repair on your own. There are several ways to get help: Check in with mentors or friends. If they’ve had similar problems, they can give you good advice. Contact legitimate, non-profit credit counseling services. They’ll work with your creditors to try to get late fees waived and payments reduced. They’ll also help you learn how to organize your finances to get your spending and credit under control again.

Watch out for any credit counselor who offers to wipe out your debt or tax liens by offering legal loopholes, or a new social security number, or who want you to stop paying your bills while they negotiate for you. And remember: bankruptcy is the worst way to get out of debt, since it stays on your credit record up to 10 years and can affect everything from your employment to rentals, leases, and insurance.

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