Use credit wisely. Don’t spend more than you can afford, and fight the temptation to spend up to your limit. Only spend what you can afford to pay each month. The idea is to show future lenders that you can pay back your debts as soon as they come due.
Make a budget and stick to it. It’s easier to control your spending if you have a set budget for all your expenses each month. Set a budget for food, transportation, and entertainment, and write it down in a place where you see it every day.
Consider using automatic payments. Many people opt out of receiving paper bills, so it can be easy to forget to make your payments. By setting up automatic payments, you may be able to avoid this trap. Just be careful not to overdraft your checking account. If you’re checking account is hovering around $0, automatic payments might be the wrong choice.
Review your credit report. You are entitled by law to receive one free credit report from each of the reporting bureaus (TransUnion, Equifax, and Experian) every year. If a credit repair agency demands that you pay for this report, remind them that you get one free report each year.
Make necessary changes to your credit report. Check each report for debts you no longer owe, balances that are incorrect or fraudulent, and debts that are not yours. If you find any inaccurate listings, you can file a dispute with the credit reporting agency. In response, the agency must investigate the matter and make any necessary changes.