Whether you’re looking to buy a house, lease a car, or make any other big purchase, having good credit is an important step to getting your loan approved. Though there are many causes for bad credit scores, fortunately, there are also several ways you can repair it. Below I will discuss 4 ways you can begin repairing your credit now.

1. Verify Your Credit Report

Oftentimes credit reports are inaccurate in ways that severely impact your score. A few years back, my student loan payment was inaccurately reported as late. Though this may sound like a small mistake, this mistake caused my credit score to drop over 200 points. While it took some time to correct the mixup, once it was corrected my credit score shot back up to a healthier level. Therefore, it’s very important to take a hard look at your credit score and question and report anything that looks wrong. You can learn more about disputing errors on your credit report here.

2. Pay Off Current Debt

One of the best ways to elevate your credit score is to pay off current debt. Though this may not be an easy task for everyone, it’s an incredibly important step towards improving your score. If you’re currently going through a financial hardship, you can try to cut costs in small ways that will allow you to save more money for larger payments. There are many methods you can try to earn extra money and help eliminate your debt. Paying off current debt isn’t always easy, but it’s very rewarding. Your credit score will thank you for it.

3. Set Up Automatic Payments

Being an adult is hard. No one prepared us for just how many bills we have to pay. With all the bills we manage monthly, it’s easy to let one slip your mind. The best way to be on time with your payments is to set up automatic payments wherever possible. Though it may not be possible to put everything on autopay, you can also set reminders in your phone calendar for when bills are due. Making timely payments is key to achieving and maintaining a good credit score.

4. Use Your Credit Cards Wisely

Credit cards often get a bad rap, but they can be lifesavers in many ways. However, the ways in which you use your credit cards can make or break your credit score. For instance, you should be actively using your credit cards in ways that are feasible for you. It may sound obvious, but you shouldn’t put more on the credit card that you can afford to pay back in a reasonable amount of time. This is why many financial experts advise only using credit cards for purchases you were already going to make.. such as for groceries or gas. When you make lavish purchases on your cards, you get caught in a vicious cycle of trying to repay money you didn’t have in the first place.

Another important fact about credit cards is that closing a credit card will usually hurt you more than it will help you. Even if you aren’t currently using your credit card, it’s better to keep it open because closing it can greatly impact your credit history.

Verifying your credit report, paying off current debt, making payments on time, and wisely managing your credit card are just a few ways you can begin repairing your credit now. However, the advice I shared above is just the tip of the iceberg. To learn even more about repairing your credit, click here.