The first thing to do is not panic or worry. Like all problems, a low credit score can be fixed. What you need to do is find out why you have a low score, and then you’ll be able to follow these easy steps to begin on your path to recovery.

1. Try to cover a few payments that you’ve missed

You’re likely struggling with your finances if you’ve been missing payments, and this advice probably doesn’t sound like it will help. However, your missed payments do the most damage to your credit score. So do your best to make a few of them for at least a couple of months.

Think of it as a short term milestone in your longer plan to financial recovery. Even getting a few payments in will give your credit score the bump needed to implement the next stages in the roadmap to financial stability.

2. Stop applying for credit products (for a while)

If you’ve been desperately applying for personal loans to deal with debt; just take a break. Constant rejection not only tanks your credit score but also impacts your morale. Instead, contact your bank if you’re having trouble paying off loans and credit cards. Most institutions will be happy to negotiate new terms or offer you a different repayment scheme.

3. Try debt consolidation

Now that you’ve taken the first steps, it’s time to think about a longer term plan. You’re already struggling to pay off all your debt, so it might be time to start thinking about consolidating some of that debt. It’ll reduce your monthly payments and give you more flexibility to deal with your situation.

Debt consolidation doesn’t necessarily have to come from a personal loan. Some credit cards also offer credit transfer options. If you’re unsure where to start looking give the iMoney CreditScore a visit. Its dashboard shows several financial products that we think will help your end goal. Feel free to check them out and see if they fit into your plans.

4. Financial restructuring

What if your credit score is too low to qualify for a new personal loan or credit card? Maybe the banks decide that you’re too much of a risk. After all, everyone is careful about lending money to strangers.

One way of rescuing your score is by restructuring your debts. Credit card companies and banks will gladly negotiate payment schemes to help you clear what you owe them.

If you’re unable to reach out to a bank at the moment, or you have multiple loans and credit cards, then you can also turn to credit counselling agencies like AKPK. They offer detailed advice on how to deal with your financial situation, and will be able to give you a personalised plan on how to go about tackling your problems.

Your credit score is updated every three to six months, so it’s important that you come back to iMoney CreditScore to check on your progress. If you can start raising your score to the next threshold, you can begin the next step in your financial rehabilitation.