Do you want to know how to improve your bad credit score? Having a bad credit score can affect your ability to get approved for financial services or job opportunities. A bad credit score can be improved with a little dedication and determination. Just follow these steps and you'll be on your way!

• To get a good picture of what your current credit is, you have to see what is actually on your credit report.

1. Under federal law (FACT Act) you can get a free copy for your credit report from each of the three national credit agencies every 12 months.Federal Trade Commission: FTC Issues Final Rule on Free Annual Credit Reports
2. Go to annualcreditreport.com and request a copy of your report -- this is the only authorized site to get your free annual credit report.Federal Trade Commission: Your Access to Free Credit Reports
3. Since you can get a free copy from each of the agencies once a year, you can spread out the requests and get one from a different agency every 4 months.Federal Trade Commission: Your Access to Free Credit Reports
4. If there are any errors on your credit report, file a credit report dispute.About: Disputing Credit Report Information
5. Getting a copy for your own credit report will not affect your score.The Plain Dealer Money Matters: Checking credit report directly won't affect score Make sure you get it directly from the credit reporting agency or through an authorized organization.myFico: Improving your FICO credit score

• • For a supplementary, step-by-step guide, visit Mahalo's page on How to Get a Free Credit Report.

• Paying on time is one of the most important things affecting your credit score.Federal Reserve Board: 5 Tips for Improving Your Credit Score

1. Get current on past due accounts. Your payment history makes up 35% of your credit score.About: 10 Things You Can Do Today To Improve Your Credit
2. Recent late payments weigh more than older late payments, so it's never too late to start paying past due accounts.Experian: Improve your credit
3. Contact your creditors to make payment arrangements. Lenders don't want to turn your account over to collections, so in most cases, they will try to work with you.Generation X Finance: 15 Ways to Establish and Improve Your Credit History and FICO Score
4. Don't wait until your account is sent to collections. A collection account will stay on your report for seven years, even after it's been paid off.myFico: Improving your FICO credit score
5. If any of your accounts have been sent to collections, make sure you know your rights.Bankrate: Debt collectors calling? Know your rights

• Paying off revolving accounts like credit cards can help much more than installment loans like mortgage, auto or student loans.MSN Money: 7 fast fixes for your credit score

1. Paying the minimum amount will not cut it. You'll end up paying a lot of interest and the debt won't be paid down for a long time.Bankrate: The true cost of paying the minimum
2. Pay off the debt with the highest interest first.Bankrate: What debt to pay off first
3. Stop using your credit cards. Accumulating more debt is no way to improve bad credit.About: 10 Things You Can Do Today To Improve Your Credit
4. Don't apply for more credit. With a bad score, you'll likely be denied for credit anyway, and another inquiry will negatively affect your score.About: What You Need To Know About Credit Inquiries
   • - This includes applying for a consolidation loan or new credit card to transfer a high interest balance to a lower one.MSN Money: 7 fast fixes for your credit score

• Part of your score is based on the amount of debt you have compared to your available credit.Federal Reserve Board: 5 Tips for Improving Your Credit Score

1. Owing the same amount with less accounts may be more harmful than having more accounts open.Experian: Improve your credit score
2. It's generally advised to keep your debt percentage to about 30% of your total available credit.MSN Money: 7 fast fixes for your credit score
3. If you have a lot of accounts, know which accounts to keep or close first.About: 5 Credit Cards You Should Never Close
4. Having older accounts can help your score.MSN Money: 4 credit-scoring myths It's better to use an older card if you have to charge anything.MSN Money: 7 fast fixes for your credit score
   • - It's much more beneficial to manage your money and pay down the accounts you already have.CNN Money: Controlling Debt

• Rebuilding your credit takes time. Stick to your plan and be patient. Your debt will go down and your score will go up eventually. If you need professional help managing your money, find approved credit counseling agencies in your area.U.S. Trustee Program: List of Credit Counseling Agencies Approved

The content on this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.