Some people are spending hours on the phone every day, speaking to creditors and lawyers and even more lenders, all in an attempt to break free of those bad credit chains that bind us up and keep us from enjoying life. Bad credit can weigh on your shoulders until it’s taken care of, so let’s take the steps to repair that score once and for all.

If you want to fix your credit rating, start paying off your debts. Pick the credit card with the highest interest rate and work on paying that one off first. Then move down the list until you’ve managed to pay everything off. You start with the most first since these are going to cost you the most if you let them sit.

Keep all of your credit card accounts open, provided there are no fees to do so, in order to keep your credit score up. Closing a credit card account may hurt you in the end, so if your credit score is fragile and you need to build it up, keep your accounts open, particularly if they have a balance currently.

Limit yourself to 3 open credit card accounts. Too much credit can make you seem greedy and also scare off lenders with how much you could potentially spend in a short period of time. They will want to see that you have several accounts in good standing, but too much of a good thing, will become a negative thing.

Knowing how individual agencies report to bureaus will greatly improve your repair efforts. Different creditors may report problems based on certain criteria and use different time frames for reporting. Research the standards for credit cards, utilities and mortgage or rental companies to know when and how these issues are reported.

If you want to invest to improve your personal finance, then make sure that you are investing for the long term. The stock market can be a very volatile place. If you wish to make short-term gains, it can be like flipping a coin. The best way to earn with stocks is by going for long term investments.

For the best credit score possible, you should apply for multiple cards and make sure you do not use more than 20% of the available balance on each card. Pay off all your cards before applying for a new one. By not going over 20%, you are not damaging your credit and not raising the interest rate.

Make sure you receive a physical contract from all credit collection agencies. The agreement should spell out exactly how much you owe, the payment arrangements, and if they are charging any additional fees. Be very wary if the company is hesitant to provide you a contract. There are unscrupulous firms out there who will take your money without actually closing your account.

With the new credit card laws in place, banks must now decline your card in the event of a possible overdraft. They will most likely try to get you to opt out of this, claiming that it is a service they provide to approve the purchase anyways, and then charge you a small fee. These fees are high. You will be much better off getting declined and using a different bank account or credit card for your purchase, than paying their fees.

Now that you know a thing or two about how to repair that bad credit score, it’s time to put the tips into action and get started on living a bad-credit-free life. Remember to take your time and to examine all the angles. Not every piece of advice you read related to credit will instantly work for you, but you need to keep plugging away at it until it’s resolved.