A bad credit score can significantly affect your chances of getting a loan, even when you need it the most. The lenders generally do not want to take any chances with people who have a low credit score. If you wish to know how to improve a bad credit score, you will be happy to know that there are several effective ways to do so.

Review the credit report
One of the fastest ways to improve your credit score is to fix the errors in your credit report. You receive a free credit report every year, and your first task is to review it thoroughly. If you find any error or any outdated information, you must notify the agency that has sent you the report. Fixing the error will improve your credit score effectively and fast.

Fix an automated payment reminder
Delay in the payment of bills will lower your credit score. The best way to avoid that is to use payment reminders. You can use a mobile app that will remind you when it is time to pay the bill so that you never miss any deadline.

Pay twice in each billing cycle
If you want to know how to improve a bad credit score, you should pay your bills at least twice in a billing cycle. If you can afford to do this, you can lower the credit utilization, which results in an improved credit score.

Take quick action
Sometimes, taking quick action can help you to maintain a good credit score. When you miss a payment deadline or if you cannot pay a bill for any reason, you must call the creditor immediately. Create a plan that allows you to pay the dues as soon as possible so that your outstanding balance does not become too high.

Pay off credit card expenses
Paying off your credit card dues as soon as possible is very important if you want to improve the credit score. If you have more than one credit card then start by repaying the ones that are maxed out.

Diversify the credit account
A credit profile or mix is made of multiple aspects like an auto loan, credit card, student loan, and mortgage. A total of 10% of the credit score is made of these. If you are not able to repay them on time, get another loan and make on-time payments so that your overall credit score improves.

Quick Loan
As a last option, you can also opt for a quick loan. These are small loans, like anything higher than $250 and lower than $1000. When you repay them, the credit agencies receive the report and your score improves.