Important tips to increase your Credit score

Here are some important tips to increase your credit score:

• At least once a year, review your credit reports from each of the three credit bureaus (Experian, Equifax, and TransUnion) for inaccuracies and file a dispute immediately if you find an error. You are entitled to obtain a free credit report once a year from each of the three bureaus. To obtain a free copy of your credit report, go to annualcreditreport.com External Link or call 877-FACT-ACT (877-322- 8228). It is important to note that your credit report does not contain your credit score. When you obtain your free credit report from each of the bureaus, you will be offered the option to purchase your credit score. However, you are not obligated to purchase your credit score in order to receive your free credit report.
• Pay your bills on time. Late payments can hurt your score significantly. If you have missed payments, get current and stay current. The more you pay your bills on time, the better your score.
• Keep credit card balances low relative to credit limits (30 percent or lower is recommended). "Maxing out" your credit cards means you have a very high utilization rate, which significantly lowers your credit score.
• Pay off debt rather than moving it around.
• Open new credit accounts only as needed; new accounts decrease the average age of your total accounts. Having accounts that have been opened a long time increases your credit score.
• Avoid closing credit card accounts because this also decreases the average age of your accounts.
• Apply for installment loans (mortgages, car loans, etc.) within a 30-day period because most credit scoring models will count multiple inquiries within a short period of time as only one inquiry.