Realizing that you have bad credit can be very disappointing. This is a problem that plagues millions of individuals. At this point you have a couple of choices. Many people simply give up thinking that it's too late to do anything about it. What you need to do is think differently. You can rebuild your credit score starting with actions that you can take today.

If you haven't already, take the first step and order your credit reports. This can be done for free once a year from annualcreditreport.com. This site has been set up to comply with the Fair Credit Reporting Act, which ensures that you get one free copy of your credit reports each year.

Once you have received your reports looked over them for any mistakes. Errors are commonly made on credit reports and if you don't catch them chances are that no one else will. These mistakes will hurt your scores and you have the right to dispute them.

In order to see real positive change in your scores you need to begin using good credit practices. 35% of your score is based on paying your bills on time. Paying your bills promptly will help increase your score and save you from paying late fees. Begin paying down your credit cards focusing what extra money you can into the highest interest cards. Taking care of them first will save you the most money.

Using your credit wisely is very important. While your past mistakes got you where you are, concentrating on being responsible now will begin to build your credit score up.