How to Improve your Credit Score

Pay your bills on time
The largest component of your credit score is your payment history. As such, the most important step to improve your credit score is to pay your bills on time.

Incorrect information on your Credit Report
If there is incorrect information that negatively affects your credit score, contact the credit-reporting agency and have it removed by showing proof or a contact that can prove otherwise.

Have a balanced mix of different credit types
Different types of credit, such as a home mortgage, used car loans, department store cards, and a VISA or MasterCard will score higher than if all were the same.

Do not apply for credit multiple times
Multiple credit inquiries in a short period of time will lower your credit score, as will new credit.

Keep your credit card balances low
Keeping all of your credit card balances low will insure that there is credit available. If your credit cards are maxed out, your debt ratio could be out of whack.

Establish long-term accounts
To improve your credit score, your accounts should be open and active for a long period of time. Multiple new accounts will lower your score, whereas a stable number of credit accounts that have been used for years upon years will significantly improve your credit score.

Pay over the minimum payment Limit
If you are simply making minimum payments on your credit accounts, a lender might look at this like that there is no more funds to take on a new loan.