Keeping track of who you owe and what you owe can help prevent formation of debt. But now it is time to work on fixing your score for a solid future. Follow these tips to repair a bad credit score quickly and efficiently.

Avoid using credit cards. Use cash for purchases instead while you are building back your credit. If you absolutely have no other choice but to use a credit card, pay off the balance in full as soon as possible.

If you are unable to get an unsecured credit card due to your low credit rating, consider a secured card to help reestablish your rating. With a secured card, you have to fund your account before you use the card so that the bank will be assured that you will pay off your debts. If you utilize a credit card responsibly, it can aid in the repair of your credit rating. If you have credit cards where the balance is more than half of your credit limit, pay these down right away. If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.

Try to work out payment plans that you will be able to follow when you deal with the collection agencies. Let them know a realistic amount you can pay. They are often flexible, trying to get at least some money from you. If you see any erroneous information on your credit report, file a dispute so you can have the information removed. You should contact the credit bureaus both online and by certified letter; be sure to include proof of your claims. Also include a request for a return receipt to make sure the agency gets it.

Any credit cards that have balances over 50% of your limit should be paid off until they are less than 50% of your limit. If your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.

It is important to read all credit card statements you receive. Always check to make sure that you are being charged correctly, and not being double charged or charged for items that you did not buy. Do not trust the credit card companies to have your back, guarantee you do not pay debt that is not yours yourself.

This is to keep your credit in good standing. Whenever you fail to make your payments on time, your credit report is affected negatively. This can make it very difficult for you to take out a loan in the future.