How to Manage My Credit Score

Your credit score affects your ability to secure an auto loan or mortgage and may even interfere with securing a job. According to MSN Money, as of 2010 more than 30 million people in the United States had credit score issues making it difficult to get loans with reasonable interest rates. Take a few steps to manage your own credit score and boost your rating to avoid these issues.

Instructions

1

Order a credit report. According to the Federal Trade Commission (FTC), as a consumer you are entitled to a free credit report once every 12 months from each of the three major credit bureaus, Equifax, Experian and TransUnion. You can order these reports online. Review each report carefully. If there are inaccuracies, such as late payments or accounts that you don't own, file a dispute with the reporting agency.

2

Make payments on time. Timely payments make up a large chunk of the credit score, according to MSN Money. Set up automatic payments with your financial institution's online banking program. With time, your credit score should experience a boost.

3

Keep credit card balances low. Balances that exceed 30 percent of the total limit on a card will drag down your credit score. For example, if your credit limit is $10,000 and your balance is $4,000, or 40 percent, your credit score is suffering. If possible, pay off balances at the end of the month.

4

Avoid closing out old credit cards. Once a credit card is paid off, most consumers want to close out the account. However, according to MSN Money, this does not help your credit rating. Instead, leave the accounts open. This shows the credit bureaus that you have restraint, which boosts your credit rating.