Always Pay on Time

• The way you pay your bills affects credit scoring, and according to Bankrate.com, payment history accounts for 35 percent of your credit score. Fixing a bad payment history is key to improving a bad credit score. This involves knowing your due dates and always paying bills on time.
  
  

Reduce Debts

• Debt is inescapable, especially if you own a home or automobile. However, the amount of debt you carry on credit cards has a major impact on credit scoring. Because debt balances constitute 30 percent of your credit score, it's best to keep credit card balances to a minimum. If possible, pay off new charges each month.
  
  

Clean up Old Accounts

• Old unpaid accounts that remain on your credit report will lower your credit score for up to seven years. Dealing with delinquent accounts and arranging to pay these balances can help improve a bad credit rating. You can ask creditors to delete delinquencies from your report once you've paid off the debt.