If you have a low credit score, it can hold you back from the things you want to do, like buying a home or a car. It can also cost you money because lenders may charge you higher interest rates than they would someone with a better credit score. Fortunately, there are steps you can take to fix your credit and get it back into good standing.

The first step to fixing your credit is getting a copy of your report. This will give you a look at all the information that goes into your score and help you identify any errors that need to be corrected. You can order your reports from each of the three major credit bureaus by visiting each one of their websites. Make sure you order your reports from all three because each credit bureau can have slightly different information about you.

Paying bills on time is the biggest factor in your credit score (35%). Whether you are dealing with student loans or car payments, it’s important to make sure all of your debt is being paid on time each month. Even just a single late payment can damage your credit. The best way to ensure you are paying your bills on time is by setting them up for autopay. If there are any bills you can’t set up for autopay, such as one-off medical bills, try to pay them as soon as you receive them.

Reducing your credit card balances is another great way to improve your credit score (30%). This can be done by paying down your balances and/or requesting a credit limit increase with each of your cards.

It’s also worth focusing on any accounts that are close to being delinquent or already in collections. Bringing these accounts current and bringing down the balances will have a positive impact on your credit score.

Having a thin credit file can hurt your credit score (5%). This is because you don’t have enough information on your report to generate a score. You can thicken your credit file by opening new accounts, especially if you are struggling to qualify for loans and credit cards. Just be careful not to apply for too many new accounts all at once, because this will cause your credit score to drop temporarily.

Having an accurate credit report can save you hundreds or thousands in interest charges when applying for mortgages, car loans, and credit cards. If you have inaccurate items on your credit report, it is your right to dispute them. You can do this on your own, or you can hire a company that can work with the credit bureaus on your behalf for an affordable fee. how to fix my credit score