Your credit score can have a significant impact when you apply for a mortgage, apply for a car loan or a personal loan, or when you attempt to get a job. The better, higher, your credit score is, the better off you will be. Below are some simple ways that you can improve your credit score.
Check your credit report, with all three major reporting bureaus, for any errors and attempt to fix any wrong information in them. Inaccurate information can may be hurting your score. Under federal law, you’re entitled to a free copy of your credit report from each of the three bureaus once every twelve months.
Make every effort to Pay your bills on time.
Resist the temptation of transferring credit card balances with high rates to lower rate cards, try to pay them off. Transferring balances can change the ratio of your total credit card balances to your total available credit lines. This could negatively affect your credit score.
If you can, open two or three new credit accounts. Don't over use them, and make sure that your payments are always on time.
Don't open a lot of new accounts all at once.
Don't open any new credit account that you don't plan on using.
Use your credit cards, but if you use them often, try to pay them off every month. The bigger the difference between your total credit limits and the balance you carry, the better. It is a good idea to keep your balances below 25 percent of your credit limit.
Unless there is a specific reason, do not close old, paid-off accounts. If you close these accounts, it shortens your credit report, and makes you seem less credit-worthy.
Avoid bankruptcy at all costs. Declaring bankruptcy is one of the worst things you can do for your credit score. It may seem like an easy way out, but it will probably not benefit you in the long run.