Your credit score may just be the most important thing for maintaining your financial health. The number impacts your ability to receive home loans, car loans, credit cards and just about anything that involves loanable funds. The better the credit score you have, the less money you will pay in interest on any type of loan. A bed credit score can most of all cause you a great deal of stress. Thankfully, there are ways in which you can begin improving your score and begin to enjoy the financial benefits that come with it. Here are five ways to start building your credit score back up now:

Be your own auditor

It doesn’t take a degree in finance to check a credit report for inconsistencies and errors. If you feel that you have been paying those bills on time, it is very important to consider taking a closer look at your reports. It is actually quite common for there to be mistakes in credit reports. If caught, you can instantly improve your score without making any big changes at all. Grab a highlighter and check for any late payments you believe you actually made on time.

Learn why your score is low

You must understand why your credit is low if you want a solid chance at improving it. Some examples of issues that may be lowering your score include:

-A few or just one unpaid bill made by someone other than you like a spouse or child has been unpaid and neglected over time.

-After defaulting on a loan it may be appearing as multiple defaults as a result of being sold to multiple collectors.

-If you have made a habit of maxing out your credit card limits, this may be lowering your score despite paying back the debt.

Take advantage of old debt

It is a mistake to believe that old debt on your credit report is a bad thing for your score. Only negative items are truly bad. Rather, good debt should be welcomed to stay on your report as long as possible, as it improves your score.

Avoid risk

The easiest way to stop yourself from improving your credit is to take on excessive risk. This doesn’t necessarily mean you should avoid investing in your favorite stock, just avoid any behavior that indicates risk. This can include missing a payment, or paying much less than you normally do. Lenders notice these subtle things and consider them red flags.

Take on easy debt

When someone’s credit score gets low, they often shy away from taking on more debt. Mistakenly, they think it is smart to save up money and wait until they can just make purchases on their own. Rather, it is actually in your interest to take out reasonably sized loans that you can begin paying back in small amounts. This means finding a loan with small incremental regular payments, such as an installment loan or similar personal loans. After a few months of making payments you will be ready to impress the credit bureaus.