A persons credit rating has never been more important than it is today!  As mortgage companies maintain a very tight leash on home borrowers, what their credit looks like will mean the difference between getting approved for a home loan or not.  And that is not all.  Credit ratings affect the outcome of rental applications, job applications, and even basic necessities like electric and gas are based on a persons ability to manage credit. Furthermore, if a person who has poor credit is approved for a loan, it is generally at a higher interest rate, meaning they pay more for the same loan that someone who has good credit.

The score used by most lenders and others considering a loan is called a FICO.  This is a score that is computed from a variety of different areas in a persons financial activities.

There are no overnight remedies for increasing your score, but there are some things that a person can do to "massage" their credit:

-Know what is on your credit.  Sometimes there are items on a persons credit report that do not belong to them.  There are methods for disputing erroneous information.  Contact each of the credit reporting agencies (there are three of them) and ask how you dispute information on your report.

-Pay your bills on time.  A late payment, even a few days late, can impact your credit rating.

-Make more than the minimum payment on your credit cards.

-Make payments early on credit cards.

-Make multiple payments in the same billing cycle.

-Never use all of the credit you have available.  Keep your balances low.

-Keep older accounts open to establish a "history".

-Open new credit accounts as you need them, and keep up with the payments.

If you are one of those people who have difficulty managing their money, you need to have a written budget for yourself.  There are plenty of on-line tools to help, like Quicken. Also, many banks have online budgeting tools you can utilize to never miss a payment.

If you are already in way over your head, do not get discouraged.  Take baby steps and begin getting things paid off. There are also credit experts that can help if needed. Having poor credit can be a temporary situation if you take the positive steps towards resolving it.