Your credit score is based, more than anything else, on what percentage of debt you're carrying as compared to your available credit. Revolving or unsecured debt--credit cards--is usually judged much more harshly than a secured debt such as a car loan or home mortgage. While paying down your credits cards is the biggest way of raising your credit score, there are a few other things you can try as well to get your credit score up.
Step 1
Check your credit reports regularly. Dispute any errors such as payments reported late that were made on time. Taking this step can give your credit score an immediate boost as it eliminates errors that might otherwise have weighed it down.
Step 2
Pay your credit card balances down so each one is below 30 percent of the available line of credit on the card in question.
Step 3
Use old credit cards every so often, then pay off the balance immediately. This helps reduce the chances of the accounts being closed as inactive, thus reducing the gap between your actual debt and your available credit.
Step 4
Get a credit card, if you don't currently have one, and use it regularly--as long as you don't go over 30 percent of the available credit. Even more important, pay the balances down just as regularly. Carrying a zero credit card balance will allow you to build your credit rating with on-time payments without paying any interest fees.
Step 5
Negotiate as necessary with any debtors to keep from having your accounts sent to collections; making regular payments to the debtor is much better for your credit score than having an account in collections.
Step 6
Apply for credit as little as possible. Each time you apply, you may lose a few points from your credit score.
Tips and Warnings
- Living in the same place for an extended period of time and having the same job for as long as possible can help make you a more attractive prospect for lenders.
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