If you are suffering from a poor credit score, you have to take steps to improve the credit scores.

Initially it is very painful and requires a lot of self discipline. Once your credit score improves, you will reap the fruitage of your labor.

The first step to improve your credit score is to make payment on time. You must not miss a single payment. You may think that missing a payment is not a big deal. It is not a big deal only when your credit score is still good. It is a big deal when your credit score is very bad.

If you miss a single payment, that record will show up every time you apply for a loan. A lot of bankers will see it. They will base their decision on that particular missed payment. Either they reject your loan application or they will approve at a much higher interest rate.

So folks, do not miss a single payment, even when you have very good credit score. You must not miss a single payment, when you are working hard to repair your poor credit score.

The next step is to stop opening or closing credit accounts. When you are suffering from a poor credit score, you are unlikely to open credit accounts. If you choose to close a lot of credit accounts within a short time, your credit score will suffer.

Credit score is calculated by basing on your credit history, and how long you keep the credit accounts. The best is to make regular payment, till you are debt free. Even if you are debt free, you can keep the credit accounts open, and close the accounts over a long time frame.

The third and most critical step in repairing your credit score is to stop using your credit cards for the time being. At the time when you are working hard to pay off the debts, and to increase your credit score, you should not make additional debt.

Part of the formula for calculating credit score is using the revolving usage method. It means how much you are making use of your credit cards, department store credit cards and lines of credit.

Try not to stop using the credit cards so that your revolving usage is below 30% usage. You do not want to give the impression that you are using credit cards way too much than the average population.

Repairing a bad credit score is painful. You have to exercise a lot of self control. You have to stop yourself from buying a lot of things that you love.

However, the effort to improve the credit score is worth all the pain you are suffering. A good credit score will ensure that you get a lower interest rate for your mortgages. A good credit score makes bankers feel safe to lend money to you.