Credit card users and loan applicants are sure to know the term credit score. A credit score is a number that reflects a person financial dependability. Credit bureaus are responsible for evaluating a person’s credit score based on information gathered from credit card companies and banks. The real problem arises when a person’s credit score is on the lower end of the spectrum. Here is a basic range that will help you understand your credit score:

• 800-850 is considered to be an exceptional credit score
• 740-799 is considered to be a very good credit score
• 670-739 is considered to be a good credit score
• 580-669 is a fair credit score
• 300-579 is considered to be a poor credit score

Note that there could be variations in these ranges. If you have a bad credit score according to these figures, then here are some steps you can take to fix it:

1. First things first, find out about where you stand
Before you start the process of improving your credit score, you need to understand where you stand. To figure this out, you would need to get a credit report from all three bureaus—TransUnion, Experian, and Equifax. While the credit score can differ from one bureau to another, it will still be in the same range. If you have a bad credit score according to all three reports, then it is time for you to fix this.

2. If you find errors, dispute the incorrect information
Once you analyze your reports, you can easily dispute the information that you feel is wrong. Gather documentation to prove that there have been errors in the evaluation. This documentation can help the bureau revise their information, and this may improve your bad credit score.

4. Take prevention measures
You must try to inculcate financial discipline before a problem occurs rather than after. Your best bet is to avoid getting into situations that will adversely affect your credit score.

5. Pay your bills and outstanding dues on time
If you have a bad credit score, you must curtail all unnecessary expenses and try to pay outstanding dues on time. This way, you can prevent adding extra dues to your existing debt. Gradually, your debt will decrease and credit score will improve.

6. Pay off your credit card balances
Find ways to clear off your credit card debt as card companies usually charge a high interest rate on them. Once the balances are clear, you can start with a clean slate. With the right measures, you need not get into a situation where you have to face problems of a bad credit score due to credit card debt again.

7. Do not look for new ways of procuring credit
Taking credit to pay off credit seems like an ideal way to fix things, but it only leads to a vicious cycle of debt. There are special credit cards available in the market to clear bad debt, but they usually charge a high interest rate, which can lead to further debt. So, remember to be slow but consistent about paying off dues rather than opting for taking out another loan to pay this debt.