You just got turned down for a loan. Now what? You can go to another bank and try again, only to be turned down again. Why are you getting rejected? Perhaps it is your credit history. Maybe you have bad credit and don’t even know it.

If you get your credit report, you may just find out that you have more problems with your credit than you thought possible. If this is the case, there are ways to improve your credit report.

The first step in improving your credit report is to check out the debt you have listed. If you find that you have a number of accounts that you are late in paying, contact the creditor and negotiate an agreement. You may be surprised how easy it could be to talk and reason with your creditors.

Keep in mind that what a creditor sends to a credit bureau can also be reversed. So if a creditor sends a bad report about you, you can have that report reversed. You will need to contact the creditor, work out some kind of deal, and make arrangements to pay off the credit. Reasoning with a collection agency may be harder to do, but not impossible.

When looking at your credit report, keep in mind there are ways to improve it. The situation is never hopeless. You will need to become proactive in your approach with each creditor. Let each creditor know you are willing to pay off the debt. Be sincere and let them know you will work with them. If you do this, they may be a bit merciful in what they say when reporting negative information to the credit bureaus.

When working with each creditor, let them know you are willing to pay off the debt by going into a monthly payment plan. Since creditors are willing to accept some kind of payment, they will be more than willing to work with you. They may set up a monthly payment you can afford or may even go one step more by cutting your debt in half and requesting the balance by paying so much a month, or at once.

When negotiating, take any agreement presented to you to a lawyer or credit counseling service to make sure it is legit. Also, make sure everything is spelled out fully, and the agreement is signed and dated. You have to make sure that everything you discussed with the creditor or collection agency is shown in the agreement. If something is left out, go back to the collection agency or creditor and state what is missing. It may have been an oversight.

Using your credit cards smartly is another way to improve your credit report. There are many myths associated with credit cards, so learn the facts before using your card. Also be careful of racking up too much debt on your cards too quickly.

In time, using your credit cards wisely and working with your creditors to pay back your debts will greatly improve your credit report. Once you’ve got your report straightened out, you can apply for new loans and lines of credit with confidence at the bank of your choosing.