How to Build a Great Credit Score

A good credit history opens doors to access to capital from a variety of sources. Credit scores are three-digit numbers, which range from 300 to 850, with 850 being a perfect credit score. Achieve a great credit score by seeking opportunities to make a significant impact with the accounts on your credit report. According to FICO, payment history, amount owed to creditors, length of credit history and applications for new credit are the biggest factors in determining your credit score.

Instructions

1

Contact the three major credit bureaus to obtain a copy of your credit report and score: Equifax, Experian and TransUnion. Not all of your monthly bills will be present on your credit score. It is important that you know which companies report your monthly payments so that you know which of your bills should be a priority each month.

2

Dispute inaccurate information on your report. If a late payment or other item appears on your credit report that does not appear correct, you can dispute the item by requesting verification from the creditor or by creating a case for identity theft. Items that are invalid must be dropped from your credit report, thus boosting your score.

3

Place your bills on an auto-pay schedule using a service offered by the creditors or your bank. This will ensure that all your bills are paid each month on time. Late payments will decrease your credit score each month. Inversely, paying bills as agreed helps your score more over a long time.

4

Use any surplus income or savings to pay down high balances, but don't pay them off. Maintaining a balance less than 30 percent of the amount of credit available is the best way to add to your score each month.