You credit score is extremely important to your life! It can cut your monthly car payment in half, it can decide what job you get, it can change your course of life all together. Don't think if your credit is bad that you cannot repair it and reach your financial goals. I can attest to that.

1. Step 1

   Most people don't realize you are entitled to one free credit report per year from each of the credit bureaus. Visit the 3 major ones websites to view your report. They are, Equifax, Experian, and TransUnion. Now they will show you your report for free, but usually charge around $5 to see your actually score. Be careful with all those ads online for "free credit reports." They usually have high cost that are hidden or they are fake and trying to get all your info.

2. Step 2

   Once you have gotten your report from the sites, you need to check for any red flags. If you don't have a house in Oregon or a car in Africa, you need to contact them and dispute the charges.

3. Step 3

   They will list all accounts that you have took out on credit and there status. If you have any unpaid accounts, pay them off or contact them and set up a payment plan.

4. Step 4

   If there is an account with late payments in the history you can request that the company re-age the account. They usually require on time payments over 6 months. This will remove the bad history and raise your score.

5. Step 5

   Keep your balances below 50% of your credit limit and don't apply for more than 1 new account every 6 months. Get your credit report every year. Make sure you are making all of your payments and try to stay away from consolidators. Avoid getting your account sent to collections, if money is tight, make a payment of $50 or so to keep them off your back for another month or two with promises to continue payments. Don't max out any of your cards.

6. Step 6

   If you have credit cards you don't use anymore, continue to keep them. This will increase your credit history.

7. Step 7

   Credit Repair firms are a good way to boost your score. Most require a monthly payment under $40 a month. Within 6 months you will see your credit score rising.