There is no way to calculate your credit score, the private companies are the sole proprietors of the credit score determining formulae. Having said that, you can always know your credit score by asking for a report from any of three credit agencies. As per rule, you are entitled to get a free report annually.
You can always improve your credit score even if it has dropped down to the rock bottom. Good credit point is an indication that you are efficient at your personal finance management. It helps you obtain a loan quickly and in most of the cases, at a very low interest rate. There are several factors that beat your credit score down to a lower level. So, by eliminating those factors, you can easily make an improvement in your credit ranking.
Maintain a good payment history
Delaying in payment is often the main source of problem. The creditors report it to the agency. Late payment shows in your credit report and shears from your credit point. Bankruptcy will also dent your credit history and stay there for a good long time. So, always be careful about paying your installment in time, otherwise you will be charged with fine and all these will take your score a few notches downward.
The agencies always keep an unblinking watch on whether you pay bills in time or not. If you have been irregular in making payment, change your habit. It will not only up your score but also save you on late fines.
Even a single debt can blemish your credit standing. So just imagine what if you are saddled with an overwhelming debt burden? You may not be able to clear all debts at a one go, think about partly payment. Speak to your lenders if they agree to your minimum payment proposal. They are likely to come round if you can successfully get across your inability to pay at a time. An alternative way is to seek a negotiation loan that will help you ladle out payment to the creditors in one swoop.
Get prepaid credit cards
Indiscriminate use of credit card is another reason why your credit report has taken a nosedive. Get it back to the high point by obtaining a few credit cards. Remember to buy the prepaid version. The advantage of having a prepaid credit card is that it will put a cap on your spending. Going beyond the permissible limit as mentioned in the credit card is not possible. How you manage expenses with your credit card will be reported to the credit bureau and it will build up your credit history in a slow but steady manner.
Make correction in your credit report
The credit bureaus try hard to make your report as perfect as possible. However, to err is human! So check for wrong entries and if found any, immediately report to the bureau about it. Correction of errors will also improve your credit score. However, it may take some time for the correction to show in your credit record as the agencies will double check to verify your claim.