Bad credit isn't impossible to fix! Check out these 5 easy tips on how to repair credit you can use to repair your credit in no time.

It can happen to any of us, especially when we're young. We make a poor financial decision that leaves our credit hurting. 

We need our credit to finance a house or car. We need it to get approved for credit cards. If you've damaged your credit, you may think there is no hope for the future. 

Bad credit can make your car's monthly payments or even insurance seem impossible to pay. Luckily, there are a few easy steps you can take to repair your bad credit. 

Fix Your Credit Score

Check out these 5 tips on how to repair credit. You can use them to breathe new life into your credit score in no time. 

1. Look Over Your Credit Reports 

Take the time to review the information on your credit report. If you have recently had a loan or line of credit application rejected, you are entitled to a free credit report. 

There are other times you can receive a free credit report, such as when you're on government assistance. You must order the report through one of the three major credit bureaus. 

Once you receive your credit report, look it over. Check for any possible errors. Where are your negative items? 

You may notice accounts that aren't yours, past due accounts, or accounts that are over the credit limit. Determine whether or not the information is accurate. 

If it is, you have an idea about where to start.If not, you can dispute any errors

You can make a dispute online, over the phone, or through the mail. Usually, this is done directly with the credit bureau, but it can be done directly with the bank or institution that reported the item. 

If the dispute is successful, the item will be removed from your credit report across all credit bureaus. 

2. Keep Old Accounts Open 

Credit age, or the length of your credit history, accounts for 15% of your overall credit score. It may be tempting to close old accounts, especially if you don't use them or the interest becomes a burden

Try to keep your old accounts open. If you close them, you decrease the length of your credit history and could damage your credit score. 

3. Make All Payments on Time 

If you're concerned about your financial health,make sure to make all your credit payments on time. Your payment history accounts for about a third of your credit score.

In order to keep your credit in good standing, you need to be able to make all payments. This is one of the best things you can do to improve your credit.

Each negative item will remain on your credit report for years. However, over time the impact will decrease.

If you missed a payment five years ago, it won't impact your credit as much as it would if you'd missed a payment last month.

Additionally, each payment you make on time will have a positive impact on your credit. If you continue to make at least the minimum payments on time, these will add up to offset any negative items.

4. Keep Balances Low

If you have any credit balances over the creditlimit, do your best to get them below the credit limit. Your credit utilization accounts for 30% of your credit score.

This is the ratio of outstanding debts to your credit limits. Creditors assume that people with high credit utilization are overextended. High balances can be difficult to pay back. 

With some financial planning, you may be able to reduce your credit utilization. Aim to keep your credit balances below 30% of your total available credit. 

If you can, keep them even lower. Ideally, you might keep them under 10%. 

Loan balances and credit cards have a similar effect on your credit. With loan balances, the closer the balance is to the original loan amount, the more it impacts your credit. 

You should focus first on credit cards. These impact your credit more. 

You may find yourself limited on funds to put toward credit repair. Make a plan. Prioritize your payments. 

If you are in danger of becoming past due on any accounts, pay these right now. Then focus on reducing your credit card balances. Then focus on any accounts that have gone to collections. 

5. Open New Lines of Credit 

Whoa there, isn't that what got you into this mess? Yes. 

Once you've taken care of the negative items on your credit report, you'll need to add positive items. Opening a new line of credit can be a great way to reduce your credit utilization. 

If you get a new credit card, your total credit available will increase by the limit of that card. Be careful not to keep any high balances on it. 

If you don't have any credit cards at the moment, now is a good time to do so. Your credit may be too poor to get an unsecured card. 

In this case, you have a few options. 

You can apply for a secured credit card. These are cards that require a cash deposit as collateral. 

Another viable option is to turn to someone you trust. If you know someone with good credit, such as a spouse, ask them to add you as an authorized user on one of their accounts. 

You'll benefit from the additional available credit and the payment history. You don't even have to use the card yourself. 

Keep in mind that any missed payments or fees will impact your credit score. 

How to Repair Credit in No Time 

Bumps in the road happen to the best of us. A few bad financial decisions could leave your credit score looking poor. 

In order to secure your financial future, you'll need to start taking care of business. You'll need to repair your credit if you ever want to buy a house or car or anything else. 

This task may seem daunting, but it will be worth it in due time. 

Visit here to find out how to repair credit and become a more financially responsible adult.