How can you improve your credit score?
The two main components of your credit score are your payment history and the amounts you owe. It's never a good idea to take on more credit than you can handle.
Late payments work against you. It's extremely important to pay bills on time, even if it's only the monthly payment.
Don't "max out" your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better. When possible, try to keep credit balances at or below 50% of the credit limits.
It's said that by carefully managing your credit, it's possible to add as much as 50 points per year to your score.
Make sure that the information contained in each of the three credit reporting bureaus is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies.
Bankruptcy filings and foreclosures, which can stay on your credit report for as long as 7 years, can significantly lower your score.
In the past, if a series of credit reports is requested on your behalf during a limited amount of time, your score would temporarily go down. However, recent changes in the law have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.
Unsolicited credit card solicitations in the mail don't count against your credit report, so don't worry.
