Don't Turn to 'Credit Repair' Services to Fix Your Credit. Try These 5 Tips Instead

Credit scores are one of those things -- like the price of groceries or how much you owe in taxes -- that you never think about as a kid but can cause a lot of anxiety once you're an adult. And if your credit score has seen better days, you've likely noticed some ripple effects in your personal finances. Having a lower credit score can mean paying more for auto insurance, having difficulty renting an apartment, and struggling to get a good interest rate when you borrow money. And many of the best credit cards out there are geared toward folks with good to excellent credit.

There's a bevy of "credit repair" companies out there that are well-poised to take advantage of people who need help with their credit scores. They claim to negotiate with credit bureaus on behalf of consumers, but charge upfront fees for their services and don't do anything that consumers can't do on their own. And if the reports of late payments or delinquent accounts listed on your credit report are accurate, you'll simply have to wait for them to fall off.

According to the Consumer Finance Protection Bureau (CFPB), most negative information stays on your credit report for seven years. And credit repair companies are squarely in the crosshairs of the CFPB for their predatory behavior.

Thankfully, there are some ways to take improving your credit score into your own hands. Here's how.

1. Resolve to make all payments on time

Your payment history makes up 35% of your FICO® Score, which is the largest percentage. It makes sense -- lenders want to know they'll be repaid by people who borrow money, and a history of late or missed payments doesn't reflect well on you as a borrower.

The good news is that you can decide, right now, to get better at making on-time payments. I use a paper wall calendar to keep track of bill due dates, but a lot of people have found success automating their finances with autopay.

2. Take a closer look at your credit report

You can access credit reports for free every week through the end of the year, so if you haven't taken a look at yours lately, hop on over to AnnualCreditReport.com and do so. If you spot errors on your report (incredibly common), you can ask the credit bureaus to remove them yourself -- no predatory credit repair company necessary.

It's important to look at your credit report at least once a year (or more often if you've been the victim of credit card fraud or are going through a big life change, like a divorce) so you can stay on top of your financial picture.

3. Negotiate with creditors yourself

If you're delinquent on a loan or credit card, you might feel the urge to throw up your hands and consider it a lost cause. But you can negotiate with creditors and debt collectors and arrange to pay a percentage of what you owe as a lump sum, or even work out a payment plan with more favorable terms.

Call them and ask, and whatever arrangement you come up with, be sure to get it in writing.

4. Consider getting a secured credit card

There's a certain type of credit card that can be a big help if you're on a quest to rebuild your credit. When you get a secured credit card, your credit limit is equal to a security deposit you pay to the credit card company. The card's issuer reports your credit usage and payments to the credit bureaus, so if you don't use too much of your credit limit and make on-time payments, you'll see credit score improvement over time.

Many of the best secured credit cards also offer you the chance to "graduate" to an unsecured card (and likely a higher credit limit) later on and get your security deposit back.

5. Speak to a nonprofit credit counselor

If you're struggling with managing your finances, it could be time to talk to a professional. And no, I still don't recommend credit repair companies! Instead, seek out a nonprofit agency, like the National Foundation for Credit Counseling. It can match you with a credit counselor who can help you create a debt management plan, learn how to budget, and provide a neutral perspective on your money issues.

If your credit score is just poor or fair, you might feel hopeless about your financial prospects. But as someone who has been through more than her fair share of financial hiccups, you're never too far gone to come back. Take a deep breath and tackle these tips to get your credit on firmer ground.