Has your poor credit been giving you a hard time? In the current economy, it's not uncommon to see credit scores quickly declining. Fortunately, there are lots of ways in which you can improve your score. Here are some credit restoration tips that you can follow. If you have a poor credit rating, you should consider lowering your credit limit by contacting your banks. If you do this, make sure you keep a low balance. If you reduce your limit by too much, the existing balance can make you over the limit. This is never a desirable situation. To show that you are serious about improving your credit, start systematically lowering all of your account balances. Pay off accounts with the highest interest rates first. Doing so shows your lenders that you are responsible. Maintain both a savings and a checking account. Having these active accounts will show creditors and banks that you have income coming in on a regular basis and that you manage your bills properly. Creditors look favorably on good banking records, so keeping your accounts in impeccable order is a must. Think about getting an installment account to save money and improve your credit score. All installment accounts must stay above the set monthly minimum, so only open one if you can afford it. Keeping an installment account will help your credit score. If your credit is not perfect, getting a mortgage can be tricky. Federally guaranteed loans (FHA loans) may be an option. Some FHA loans even cover a down payment or your closing costs. If you can't make your monthly payments, contact each of your creditors to see if you can work out a payment plan you can afford. In many situations, a creditor is going to be willing to work with you. This can also make your financial situation easier by letting you pay more on those accounts where you have not been able to set up an alternate plan. Find and challenge errors on your credit report using the dispute process offered by each credit reporting agency. Gather all supporting documents and any errors you find, and send them with a letter to the credit reporting agencies. Include a request for a return receipt with the dispute package so that you can prove it was received by the appropriate agency. The quickest way to work on repairing any type of credit is to first pay off any outstanding debt. Every day that goes by that you have outstanding debt on your report, you are that much further away from seeing your credit score start to rise. You need to budget aggressively to get these debts paid off as soon as possible. Start living within your means. This is nothing short of a lifestyle overhaul. Unfortunately, easy credit has lured many people into buying luxuries that they don't need and cannot afford, which will always catch up with them. Be realistic about the lifestyle your income affords you. You can use the following advice to improve your credit score. Stop your credit score from spiraling downward, and look for ways to get back on track.