Your credit score reflects your individual credit payment patterns over time, with more emphasis on being placed on recent credit history.
You should check your credit report periodically to see a summary of your credit history, and to see if there are any fraudulent activity being conducted under your name. You can check your credit score for free.
Once you get a summary of your credit history, you should do the following if you wish to improve your credit score.
Pay Your Bills On Time
It is vital to make payments on time. Late and delinquent payments can have major negative impact on your credit score. Creditors want to see that you can make payments on the money that you borrow. Even if you have a low balance on a bill, be sure to make at least a minimum payment to keep it current.
Keep Balances Low on Revolving Credit
Having a few credit cards and other forms of revolving debt can be a good thing, if you use them responsibly. Just because you have the ability to charge, make sure you are only charging for essentials, and you’re not getting caught up in splurge spending. Try to keep your balance below 50% of your credit limit.
Be Wise When Applying For New Credit
It’s absolutely okay to apply for and open new credit accounts, but only do so if you really need it. Opening accounts just to have accounts will not help improve your credit score. Each time you apply for credit your credit record will be checked, and too many credit checks can have a negative effect on your overall credit score.
Pay Off Debt
Making consistent payments on debts that lead to you ultimately paying off the debt will have a positive influence on your credit score. Also, don’t be tempted to close unused credit cards simply because you paid them off, as you’ll learn that owning the same amount of debt but having fewer open credit accounts may lower your credit score.
Protect Your Identity
More and more people are victims of identity theft, and it’s important that you not be one of them. The most effective thing you can do to prevent fraud and identity theft is to regularly check your credit report, especially when you can do so for free. Take time to go through the report, and if you see anything on there that you know you did not apply for, be sure to report that information to both the credit bureaus and the credit issuer as soon as possible.