Something as simple as making one late payment on your credit card can cause your credit score to drop by several points. When you factor in those missed payments and loans you defaulted on, you might see your score drop to a dangerously low number. Many people assume that they can ignore their credit for years, but you must take care of anything keeping your score low as soon as possible.

If you decide to buy a new or used car in the next few years, you’ll likely find that your credit score affects your available options. When you apply for financing, the lender looks at your score and your history to determine if you’re a good candidate for a loan. With a poor credit history, you might not have access to the car you want. A few things that you can do now to get back on track include:

• Lower your overall debt
• Pay your bills on time
• Look at your credit report

Make Back Payments

Every time you skip a payment, your creditor contacts the credit reporting agencies. These transactions can stay on your credit report for years, but you can get back on track by paying those missed payments. After looking at your credit report, contact each creditor about any payments you missed in the past. Once you make those payments, the creditor might agree to remove those transactions from your report.

Work with a Counselor

If you aren’t sure where to start, call on a counselor for help. A credit counselor can help you go over your bills and find ways to improve your credit score. Some counselors can even work out a payment plan with your creditors to pay off higher bills faster. The sooner you start lowering your debts, the sooner you’ll see an improvement in your score.

From new homes to used cars, almost everything you buy involves credit. Repairing your credit score will help you get lower rates when applying for loans. Improve your score by working with a credit counselor and paying back missed payments.