If you have been denied credit, a mobile phone contract or an application for a bank account it is normally due to having a particularly low credit score. Repairing a credit score is a long term process but is undoubtably worth the hassle as it can make financial transactions less painful and future borrowing less expensive.

Here are some tips that will help you get started.

1. Review your credit report and check for errors. More often than not there are one or two mistakes that can be corrected provided you have the supporting documents. By bringing up these issues with the credit report company and going through the investigation process to get them removed you can rapidly improve your credit score
2. Ensure your personal details are correct. Making sure your address and contact information are up to date as well other details such as your marital status and employment is vital to maintaining a good credit score. Most importantly ensure you are registered to vote at your current address - credit reference agencies will check the details you provide against the electoral roll and if you are not on it you will severely affect your ability to get credit
3. If you are refused for credit do not look elsewhere - first check your credit report, fix any errors and work to improve your credit score. Each application denial is recorded on your report and many applications in a short space of time - or worse still a succession of denials - count against you. If you have already made multiple unsuccessful applications then you will need to wait six to nine months before applying again so they do not prejudice your application - and in the meantime you should continue to work to improve your credit score.
4. If you have more than one credit card or loan always make sure you pay off the one with the highest interest rate first (while ensuring you meet minimum payments on the others). Once you have paid off the card with the highest interest rate close the account and move onto the next
5. Wherever possible try to move your debt from high interest accounts to lower interest - for example an overdraft can often charge as much as double the interest of a credit card, and a 'reward' or 'affinity' card will often charge a much higher level of interest than a standard, no frills credit card.
6. Avoid store cards at all costs - they charge punitive levels of interest. If you have store cards and are unable to repay them immediately, at least try to shift the debt to other cheaper forms of borrowing
7. Stop Saving - although saving should certainly be encouraged when your debts are managemable, recent rate cuts make it highly unlikely you will earn more in interest from savings than you will pay on your credit card debts - use a savings calculator to check. Using your savings to clear your highest interest rate borrowing is a wise financial move while will enable you to save more in the longer term. Check for forgotten accounts such as inheritance given when you were a child as these can be a fast way of clearing your debts and moving to financial freedom
8. It is too easy to use your credit card to pay for everything. To cut down on your credit card debts you need to break this habit - try not to spend anything on your credit card if you can, or limit yourself to food shopping and other essentials. If you're not heading to the supermarket, leave your credit card at home!
9. To ensure you have more money to meet your repayments you should stop spending money on things that you don’t really need. These include gadgets, clothes, drinking, eating out, shiny shoes and cinema tickets. You may miss them for at first but it need only be a temporary measure; when your finances improve you can enjoy them again.. in moderation!
10. Always meet your minimum repayments - there is no sense in paying off one card while incurring charges on another for missed payments. Your bank can help you set up a direct debit to simplify this process
11. Look for ways to enjoy staying in instead of going out. Inviting friends over for dinner can be a great way to save money on eating out or going to the pub, and watching a DVD or playing a board game with your loved one(s) will always work out cheaper than a trip to the cinema. Buy a good cookbook and cut down on takeaways. Sexy underwear and candles can also make for a great night in!
12. Check your bank statements for any monthly payments you make for non-essential services as these will seriously affect your ability to repay your debts. Often we sign up for frivolous services such as monthly DVD rentals or cable TV we rarely use - closing your account for these services can free up significant extra cash to help you meet your repayments. If you think a service is essential - your mobile phone contract, for instance - then try to renegotiate your contract onto a cheaper monthly plan, and opt to text friends and families rather than call them to save more.
13. To come up with the extra money you need to repay your outstanding debts try working overtime, getting a second job if it is possible and sell stuff that you don’t need.
14. Speak to your creditors and explain your financial situation and how you plan to remedy it - often the fact you are showing willing will lead to assistance and advice in meeting your repayments
15. As things improve, close your unused accounts especially the newer ones. You can also apply for a new credit cards offering lower interest rates than your current ones. Where possible opt for cards with a low or zero balance transfer rate (be wary of transfer fees - these can often significantly reduce the benefit) for an 'interest rate holiday' to increase the speed you can pay off the debt and endeavour to pay off the new cards as soon as possible

Improving your credit score is vital if you score is below 700. Doing so will enable you to demand better rates from banks and other lending institutions when you want to buy a house, a car or undergo renovations at home.

Although it may take some small sacrifices to improve your credit rating it is certainly worth the effort. With a bit of practice these steps will become natural - it is certainly possible to live very happily while living frugally, it just takes a bit of creativity.