Being saddled with a poor credit score is by no means the end of the road. A lot of people assume that once their credit score has declined, there’s nothing they can do to rehabilitate it.

While improving your credit score is not easy and takes a lot of discipline and sacrifice, it is possible. It should be a financial priority to make sure you have access to financing for future transactions.

So, if your credit score has taken a dip recently, don’t despair. Here’s what you can do about it:

1. Investigate

If you don’t stay on top of your credit score, you’re likely to find out about a decline when you apply for financing. It will be too late by then to rescue your current application. That’s why you should check your credit score frequently.

A reduced credit score means that something has gone wrong. Before you can address the problem, you need to know what it is.

What could have gone wrong?

• You have not been making payments on existing loans, credit cards, etc.
• It’s possible that someone has stolen your identity and used it to lay their hands on some money.

2. Dispute

Mistakes happen, and there may be a debt reflected on your credit score that you have settled. Or you might have come across an identity theft that has taken place. Instead of fuming about the injustice of it all, take action. The credit bureau that has run your credit check is the first place to start.

What should you do?

• You need to follow the process laid out on socialfish.org to get the situation resolved.
• You’re going to have to supply evidence to back up any claims you make in a dispute. So, if you’ve paid the debt that’s still reflected as outstanding, you must be able to prove. Keep your receipts and other proof of payment filed and ready. You never know when you’ll need it.

3. Remediate

If your credit score has decreased because you haven’t been paying your debts, don’t bury your head in the sand like an ostrich. The situation only continues to deteriorate if you neglect to do something about it. Interest added to the debt increases daily, so it’s best to resolve the issue.

What should you do?

• If you have the money available, settle the debt immediately.
• You can phone the company you owe money to and make a payment plan that you can afford. If you arrange this, bear in mind that it’s your second and final chance. Should you default on it, your credit score is going to get even worse.
• It might be better to consolidate all your outstanding debts under the umbrella of one loan. The repayments might be reduced if you get a favorable interest rate.

4. Maintain

Once you’ve got your credit situation under control, don’t feel that you can sit back and relax. Treat this blip on the radar as a serious lesson and do what is necessary to avoid being in the same situation again.

What should you do?

• Keep track of your debts and pay them on time. If something happens that prevents you from making payments, contact the other party immediately. Staying silent and avoiding the debt won’t work.
• Don’t take out loans and use credit cards unless it is necessary. Healthy credit activity is an important part of your credit score. However, if you have a multitude of loans and debts, it can reduce your credit score.
• Monitor your credit score for signs of identity theft. It is best dealt with as soon as possible.