3. Spend wisely with your new credit card: Use credit cards only when it’s necessary and also try to avoid expensive purchases using credit cards. Make sure that the items you buy for each month should be paid with your money. Try to buy maximum things with cash if possible than swiping your credit card, which in turn will help to rebuild your credit score. Even, while doing expensive purchases swipe the amount that you think you can repay back easily or else avoid such spending.

4. Pay your bills on time: Paying bills on time is the foremost thing to do in order to repair your bad credit. Even if the debt you owe is a small amount, it is vital that you make payments on time. This is a very simple strategy but important too. The credit card companies have nothing to do with the number of cards you owe; they only look out for the payments. It is better to pay the credit card balance and keep the sufficient balance that you need in your personal bank accounts.   Thus, you can build a good credit score and avoid high interest rates and late payment charges.

5. Don’t close your old or unused credit cards: If I close all my old or unused cards I can improve my credit score! Do you think the same? Well, this conception is wrong. The only benefit you will get after closing your old cards is that it will improve your score by lowering your credit utilization which is nothing but the total balance versus the total credit limit. Your credit score will mainly depend on how old your credit history is, older the credit history better the credit score. One drawback behind closing your old or unused card is that if you stop using them the card issuers will close your accounts and will stop updating them to the credit bureaus.

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