A bad credit score can be costly. Anything lower than a 620 can make getting a decent loan with reasonable terms practically impossible. But there are things you can do starting today to slowly but surely raise your credit score and put you back in the financial green:

1. Pay credit card balances down to less than 30% of your credit card limit. Having a high balance to available credit ratio can seriously hurt your credit score. Start by paying down the credit cards you have that are the closest to hitting their limits.
2. Limit your charges to 30% or less of your credit card limit. Even if you pay off the balance in full every month, a big balance can actually hurt your score because of the way credit scores are calculated. It is best to use your cards less and operate more on a cash or debit card basis.
3. Check your credit report for accuracy. If you have negative items being reported on your credit report that aren't yours, definitely contact the credit bureaus and get this information corrected. It is important to check that the credit limits on each of your cards is being accurately reported. Sometimes your credit score may go down if your creditor is inaccurately reporting a lower credit limit than what you actually have. Simply ask your creditor to update this information.
4. Use a credit card you've had for awhile. The longer you show you've had established credit, the better. Sometimes as time goes by, we forget about our older cards and stop using them altogether. Unfortunately, this means they'll carry less weight when your credit score is calculated. Simply use an old card for a small purchase once every few months and pay off the balance in full when the statement arrives.

There are some things you should avoid when trying to raise your credit score:

• Late Payments: While this may seem obvious, it is still important to note that on time bill payment will do wonders for your credit score.
• Apply for new credit: If you already have a good amount of credit, applying for more credit can hurt your credit score.
• Paying off credit with credit: Attempting to consolidate debt yourself by transferring balances from several cards to one with lower interest can hurt your score. It is generally better to have smaller balances spread out over a few credit cards. If you can keep each balance to less than 30% of the credit limit, even better.