A low credit score can cause trouble getting a loan approved or while requesting for lowered interest rates. Low credit scores also negatively affect your financial stability over time, so here are some smart tips to improve a bad credit score and your financial standing:

• Pay your bills regularly:  One of the basic tips to improve a bad credit score is to pay your bills on time. You may have the money to pay your bills but forget the deadline and end up clearing the dues late, which affects your credit score. You can start by setting remainders for all your bill payment due dates to prevent late payments from affecting your credit score.
• Do not own many credit cards:  Some people end up getting multiple credit cards from different banks at the same time. This might be a result of the tempting offers or a misunderstanding that multiple credit cards improve financial standing. However, applying for multiple credit cards in a short period can cause your credit score to go for a toss as you are considered a risky debtor.
• Do not close your older credit card accounts:  One of the smart tips to improve a bad credit score is to keep your older credit card accounts active. The older your account, the more trusted your financial status is, so even if you do not use a particular credit card, keep it active if you’ve been holding it for years.
• Talk to your creditor if you cannot pay your bills on time:  There are times when you genuinely might be unable to pay some of your bills on time. Instead of getting into denial about it, take the initiative to talk to your creditors and explain your situation to them. If your creditors are empathetic, they can prevent the late payments from affecting your credit score.
• Try increasing your credit limit:  Another major point in the list of tips to improve a bad credit score is to increase the credit limits of your cards. Clearing off your bills on time can help you increase your limit easily. The more your limit, the better your credit score will be. However, a higher credit limit does not mean you have to use it entirely, so avoid maxing out your credit card.
• Dispute issues in your credit score:  You are entitled to receive a free copy of your credit score from reputed credit rating companies once a year, so ensure that you make use of this to know where you stand financially. If you find a discrepancy in the same, appeal it and get it corrected right away.

All these tips to improve a bad credit score can help you improve your financial standing and make it easier for you to get a loan.