How to Improve Your Credit Rating and Increase Your Credit Score

Credit scores and ratings determine a plethora of things for a person. Your credit score determines whether you are eligible for renting or buying a home, for car loans, and for other credit cards and financial assistance. If your score or rating is too low you might be rejected or declined and no longer eligible for a specified amount of time, depending on the business reviewing you. By keeping your credit score and credit rating up, you will have more access to the resources and products you want or need.

Instructions

Improve Your Credit Score and Rating

1

Claim a free copy of your credit report to ensure all information is correct. Each person in the United States is allowed one free credit report from each of the three main credit bureaus annually. Your free reports are available from AnnualCreditReport.com. Beware of other sites, which might sign you up for paid offers that you would need to cancel after you received your report.

2

Find any errors on your annual credit report and take the necessary steps to get them fixed.

3

Cancel any paid-off credit cards that you haven't used for a long time and that you never plan to use again, especially if they are newer cards. By having fewer credit card accounts open, your credit report will not be overloaded with various credit cards when it is checked.

If there is an account that you use often, make sure to keep it open to continue building good credit. Having an active credit card account open and in good standing for a long period of time can help you build credit to improve your credit score and rating. Good credit history is built up over time by using the same select few accounts and keeping them all in good standing without having several unused accounts open.

4

Open a new credit card account only when absolutely necessary. If you don't need it, don't take it. By opening new accounts at various stores you visit, you accumulate a long list of credit cards on your report. That can cause points against your overall score and rating.

5

Keep your account balances low. The more money you owe to various companies, the lower your score and rating will be. By keeping these balances low, your credit scores will improve immensely.

6

Pay your bills on time. Keep your report clear of any late payments. If you pay a bill late, that will show up on your credit report, thus affecting your credit score and rating.

7

Avoid negative remarks on your credit report, which can cause your rating and score to plummet. By forgetting about a past-due bill that then is sent on to claims, your report receives a mark that will not go away for several years, even if you later pay that bill.