Your credit score is a vital piece of your financial picture.
A low credit score can prevent you from getting the mortgage or auto loan you need and it can even affect whether or not you get offered a new job or promotion.
If you know that your credit rating is less than perfect don't ignore it or pretend the problem doesn't exist.
There are some steps you can take to improve your credit score and get back on the road to better finances.
The first thing you need to do is review your credit report.
Checking your report is easy, free.
By reviewing your report you can identify the problematic areas and develop a plan to improve your credit.
You may also come across errors on your report.
In fact, 3 out of 4 credit reports contain errors and they could be negatively affecting your score.
By contacting the credit reporting agencies and alerting them to the mistakes you can have them removed and see an instant improvement to your score.
Other things to look for include maxed out lines of credit and defaulted loans.
You will want to start paying down your debt as much as you can and get on a repayment plan for any debt or loans that you have fallen behind on.
If you continue to make on time payments you will eventually see an improvement in your credit score.
It's difficult to fix a problem if you aren't aware of what it is.
A low credit rating is only the symptom of something else.
By identifying what it causing your low score you can take the steps necessary to fix it.