Bad credit scores can haunt you when you are trying to get a new car loan, mortgage, or other loan with a low interest rate. The good news is you can do several things to increase your credit score. Before we spoke about improving your credit score by removing bad items from your credit report with a special company, first we will look at things you can do directly.

-First and foremost is getting rid of those credit card balances. You will need to start paying off the balance in larger increments. This means you may have to do without some things at home. You may have to get rid of cable for a while, stop spending money on things that are not necessary, and change the way you pay your bills.

-Some bills will offer you breaks just for having automatic payments. Student loans for example will offer a lower interest rate if you sign up for automatic payments. Check with your billing companies to find a break.

-You may have to stop spending your extra cash during the month on clothes. You may need new clothes, but chances are what has been working will continue to work while you are paying down those credit cards.

-Once you have paid off the balance of the cards do not close the credit card. Keep it open. The loan companies will see you have credit history on your credit report and they will also see you have a high limit, but a low debt ratio.

-If you have high interest rate loans pay them off. Things like payday loans need to be paid off and never entered into again. Sometimes sacrifices have to be made to improve your overall credit score.