When bad credit is the problem, resorting to tricks will not do. Some fraudulent agencies that offer debt relief services may give consumers the wrong advice. Needless to say, some credit repair agencies are only after one thing – making profit even at the expense of consumers struggling with bad credit.

For instance, you may be advised to use an Employer Identification Number in place of your Social Security Number to conceal your true identity. Of course, this is an illegal tactic and resorting to such actions can only lead you to trouble.

The good news is that there are positive steps that you can do, even on your own, to get out of bad credit. And you can begin by doing the following steps:

1. Check your credit report. If your credit report contains errors, unauthorized charges, or negative remarks that should have been removed a long time ago, you may get a lower score than what you deserve. This is why it’s important to check your report at least once every six months.

Carefully examine your report for any misinformation. If you find any wrong detail, send a letter to the credit bureau that issued your report and request for corrections. Taking this first step can instantly raise your score by a number of points.

2. Pay your bills on time. Even occasional late payments can cause your credit score to drop really low. If you already have bad credit, you can prevent your score from getting worse by paying your current bills on time.

3. Free up your credit lines. Keeping your charges below 30% your credit limit is another way to improve your rating. If you own a credit card or a few credit cards, keep your monthly charges minimal.

4. Monitor your personal expenses. If you do not keep track of your own expenses, you will be more prone to overspending. Are you really aware of how and where you spend your money? Do you tend to spend more than what you can afford?

The only way you can answer these two questions objectively is by writing down the figures. Add your total expenses (including your debt repayment, personal expenses, utility bills, etc.) and compare it with your monthly income. The difference you get will tell you whether or not you need to make changes with your spending style.

5. Work hard on debt repayment. You will need every cent you can save to pay down your debts one step at a time. It is smart to speak with each of your creditors and propose a repayment plan that will make it easier for you to keep up with your payments.

For example, you may request for a lower interest rate, a longer repayment period or have the extra fees waived so that your monthly payment can become more manageable. Many creditors are open for negotiations but you have to prepare a realistic repayment plan to make it happen. If your creditor agrees to your proposed plan, then you should be able to stay true to your promise.