A bad credit score can affect your life in more ways than one. Interest rates on credit cards and loans are higher, security deposits on utilities are costly, even insurance premiums can go up. Plus, you could be denied employment opportunities, especially if the job is in the financial sector.

If your credit rating has taken a hit, here are a few ways to fix bad credit:

1.      Understand how Your Bills Affect your Credit

A recent survey by TransUnion found that people often do not understand which monthly bills affect their credit score. For example, paying your rent bill on time does not affect your credit score because rent collectors generally choose not to report payments to credit bureaus, unless you owe them several months’ payment. Similarly, cable, internet, and cellphone bills aren’t usually reported to credit agencies. However, car payments and student loans typically do get reported if they are not paid on time.

When money is tight understanding which bills must be paid on time and bills that could be delayed can help from sinking your credit even more. Pay credit card balances on time and do not miss car payments. Late payments can affect your credit score, and the later you pay, the more damage is done to your credit score. The best solution is to pay your bills before they are due.  Set up an automatic payment schedule for loans that have fixed payments including student loans, car loans, etc. to make sure you don’t miss a due date.

2.      Apply for Car Loan

I know this sounds counterproductive, but there are several advantages to applying for a car loan. When you may payments on time, it helps to build a positive payment history. Did you know this could make up for up to 35% of your FICO credit score? Also, new credit makes up for around 20% of your credit score!

But not all banks are willing to lend money to those with a bad credit score. Even when they are willing, their interest rates are higher. You could also apply for loans in a cooperative credit society, but they often have too many formalities. Auto dealers also offer badcredit car loans. There are several advantages to applying for car loans in Halifax through an auto dealer. The interest rates are usually lower than the banks, and they sometimes offer discounts and other cashback benefits. Some auto dealers offer to report repayments through credit rebuilding programs which can help you get your credit score back on track.

3.      Get a Secured Credit Card

A secured credit card requires a deposit upfront and is great for people with zero credit or bad credit. The deposit is used as collateral in case you don’t pay the balance. As you rebuild your credit score, the secured credit card will be converted into an unsecured card and the deposit money returned.

Using these tips you can start to help your credit score improve which can help with more financial stability in the future.