You need not suffer the effects of bad credit, no matter how you wound up with credit problems. Whether you have been personally damaged by economic conditions, victimized by dishonest lenders or even were simply too carefree in your spending, you deserve better credit. The following tips will help you take steps to begin to repair your credit. Aggressive repayment agreements and hard-to-handle lump-sum payments can make it harder than it needs to be for you to fix your credit. Do not overdo it and run short; have a budget. You put yourself in worse shape if you cannot make these payments, and in the end, it is simply not worth the short term relief it provides. Try lowering the balance of any revolving accounts you have. Reducing the amount of debt you're carrying is one of the best ways to improve your credit score. The Fair Isaac Corporation, FICO system tracks how much of your available credit you are using in 20 percent increments. Stop living beyond your means. This will require a change in your thinking. A lot of people rely on credit to maintain an unrealistic lifestyle, but when the credit runs out, all that's left is a very big bill. Look at your budget, and decide what is realistic for you to spend from month to month. If you find any errors on your credit report, you should dispute them. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. Include a request for a return receipt with the dispute package so that you can prove it was received by the appropriate agency. You can aid the credit repair process by making minimum payments on time each month. Any late payments get reported to credit bureaus and it shows up as negative on your report. If you continuously make at least the minimum payment, your credit report will reflect this responsible behavior. If you are having budget problems, call a credit counseling organization. These services will help you communicate with creditors to make a simplified payment arrangement that will help you in the long-term. Good credit counseling can help you understand the best, easiest ways to oversee your finances and pay your financial obligations. These are ways of protecting your credit rating. Every time you make a late payment, it is logged in your credit report which can hinder your ability to take out a loan. Go over your credit reports from the major agencies, and have any false information wiped from your files. Make a note every time there is contact, including correspondence by email or postal mail. Make sure to keep records of any calls you get. Your dispute letter should be sent by certified mail; this way, you can prove both the date you mailed it and the date it was received. Restoring your credit rating looks at first like an uphill battle, but with sound effort and the right advice, that battle can be won. Apply the advice from this article to start your march toward better credit score days.