Credit score does matter a lot when you decide to apply for a credit card. The more points you have, the less interest or fees you will pay. Just compare: credit card applicants with a score of 760 or higher can qualify for an average interest rate of 8%. But for borrowers with scores below 620 the average APR is 14%. That translates into hundreds of dollars you will need to pay each month. So if you want to qualify for beneficial credit card offers, you need to improve your credit rating.

The reasons why your credit score is less than average can be various: for example, you could make late payments or file for bankruptcy. However, don't despair. Facing bad credit blues is the reason to brace up yourself and take measures to get back on your feet. You can prove your creditworthiness once again if you avoid previous mistakes and manage your cards wisely. It will take your time and patience, but the aim is worth your efforts.

First of all, check your credit report. The FICO score is calculated based on the data from your credit report, so it should contain accurate, complete, and up-to-date information.

Errors in credit reports happen from time to time. For example, you can find that there are late payments that are not yours or accounts listed as "current" then they are actually "paid as agreed". In this case you need to inform the credit bureau about the inaccuracies. Write them a letter and include copies of documents that support your position.

Typically, a credit bureau is making an investigation within 30 days. They contact the organization that provided the information and verify it. When the investigation is complete, the credit bureau must send you the results and a free copy of your credit report if the incorrect information was changed.

If an investigation doesn't resolve your dispute, you can write a short statement and ask the credit bureau to include it in your file. Anyone who orders a copy of your report will get your statement as well.

Having bad credit is not the reason to stop using your credit cards. Otherwise how can you prove that you are a reliable and trustworthy credit cardholder? If there are no borrowing-payment data, there is nothing to report. The main guideline you need to follow is to always pay bills on time. More than one-third of your score is based on your payment history, and the later you are, the more points you lose. Then, don't max out your credit limit. The more you spend, the less is your credit utilization ratio - the percentage of your credit card balance and the available credit. If you have debts, try to keep them below 30% of your available credit.

The length of your credit history accounts for 15% of your FICO score. So it's time to dust off your old plastics. If you don't use them, the issuers won't report payments to the credit bureaus. The inactive accounts will still appear on your credit report, but they will not contribute to your credit score. However, don't regard our advice as a signal to spend: charge a small amount and pay it off in full when you receive the bill.

Consider bad credit as a beginning of a challenging road from bad credit cards to excellent offers. Your financial behavior will determine the direction you will go. Well-considered debt management will open you doors to the best credit card offers with low interest rates and beneficial rewards programs.

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