Credit can be confusing. Having good credit means that you're able to borrow money and access low interest rates for home or vehicle loans and credit cards. But, what if you don't have good credit? 
Many Americans don't. In 2020, more than 30 percent had a credit score below 670, which is defined as "fair" or "poor," according to credit bureau Experian. (Scores above 670 are considered "good" to "exceptional.") The good news: If you've struggled with your credit, it's never too late to do something about it. 
"Your credit is not a terminal illness," says Katie Bossler, quality assurance specialist at GreenPath Financial Wellness. "It's very fixable."
Many people feel shame over their credit, she says, but often your credit takes a hit because of something outside your control, such as excessive medical bills, rather than just overspending or carelessness. Plus, most Americans lack education on how to manage their credit, Bossler adds; more than 50 percent of millennial women said they were never taught how to manage credit, according to a Credit Sesame survey. 
"But, it's never too late to learn it for the first time—or repair it," she says. Here are six ways to rebuild your credit. 
Check your credit report now—and regularly.
The first step in rebuilding your credit is to pull your credit report and review it. You can check your credit report for free every 12 months at AnnualCreditReport.com, which is authorized by federal law. 
Errors, including bills that aren't yours, sometimes appear on the report. If that happens, you can dispute them through the credit bureaus, Bossler says. Get into the habit of checking your credit report regularly.
Pay your bills on time.
Payment history is a key factor in your credit score, which accounts for both on-time and late bill payments. 
"Paying your bills on time is probably the number one thing people have to really get used to doing," says Jake Guttman, founder and CEO of Rosevest Financial. "It's a really important factor in proving your worthiness to borrow with credit reporting agencies." 
When you pay bills on time, you build confidence with lenders and show that you're able to pay back loans, he says. 
If you've missed payments in the past, don't worry, just start paying on time now. Credit scores focus more on recent activity from the last 12 to 24 months, Bossler says. "So if you were late last month, that's going to hurt your score more than if you were late two years ago," she adds.