1. The most important thing you need to do is to pay all your bills in time. The payments after due date (i.e., payments made after 30 days or more) give negative impact on your credit rating.
2. For your own convenience carry less number of credit cards. Intimate your creditors to close your accounts and at the same time write about this status change to all the three credit-reporting agencies.
3. You should request in writing to your creditors to lower the credit limits on your accounts to reduce your amount of credit that is available. Even if you owe nothing on your part, the total amount of available credit is considered by the lenders.
4. You need to avoid Bank-ruptcies, tax liens (a lien for not paying state or federal income taxes or property taxes) and collections. This is because a bankruptcy remains on your credit report for upto 10 years, whereas collection accounts and paid tax liens remains for seven years and furthermore unpaid tax liens will trouble you for all your lifetime.
5. To re-establish a credit you should get a family member or a friend to co-sign on a small loan or credit card. It would be a great help in re-establishing a credit. Be sure to make your payments in time.
6. To keep a look on any existing errors you need to get a copy of credit report yearly.
7. To re-establish your credit you need to get a secured credit card. You need to keep a particular amount of money in your account so that it will be just sufficient to cover all your charges. And make your payments in time.