Your Free Credit Score - How to Improve Your Score

Everyone's objective these days is to try to increase our credit score to above our state's average so that we can easily get credit if we need it and more importantly, so that the lending companies won't raise our current interest rates. If you've got a credit score below 720 and would like to increase it, here are a few ways to do it:

1. Pay your bills on time. Your payment history accounts for 35% of your credit score. Lenders want to know how diligent you are in paying off all your debts. Strive to pay off all your balances in full and if you can't, then pay off more than just the minimum amount. This will help to significantly improve your free credit report and score.
2. Reduce your debts. The amounts you owe on all your debts accounts for 30% of your credit score. If you have multiple credit cards, reduce the outstanding balances on them – one at a time – by paying more than the minimum amount. Do this for all your cards and other debt. Raise the money by cutting down on your expenses, or finding other sources of income – if you've got a hobby that you can earn from, make it a moneymaking venture and use your earnings to reduce your debt balances.
3. Keep cards with long credit histories. The longer your credit record, the better. Your credit history accounts for 15% of your credit score. If you have several cards, make sure your credit card with the longest history is in good shape. If this is not your regular credit card, hide it in a drawer but take it out once in a while to use it. Lenders will want to see some activity on your credit accounts, and cards with a long credit history of timely payments will help to pull your free credit score up.
4. Limit new credit applications. If you are looking for a new credit card limit your credit hunting to about two weeks for each type. Do your credit card hunting for a focused period of two weeks. If you want to apply for a car loan, wait for a few months before doing that; don't do it at the same time as your credit card hunting. New credit accounts make up 10% of your credit score and if you apply for multiple credit at the same time your free credit report and score will suffer.
5. Try to have a good mix of types of credit. The types of credit you use make up 10% of your credit score. If you have several credit cards and a car loan or a mortgage loan, that's good but don't apply for new credit unless you need it.

Protecting your credit rating is important. If you haven't done so yet, you need to get your free credit score now and review the points where you think you are weak in. Our website gives advice on how to get your credit report and free credit score, as well as other useful information on personal finance and credit. Visit our site to find out more about free credit score repair.

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