Here are 5 things you can do to build up your credit score:
- Pay your bills on time.
- Use less than thirty percent of your total available credit. An example would be if you have the $1000 of available credit, you should never have more than $300 of credit on your cards.
- Don’t have too many open lines of credit available (having several open lines of credit, even if not all of them are in use, will raise red flags from potential lenders.)
- Have a good balance of credit (installment loans — like a car loan — and credit cards versus just credit cards.)
- Check your credit report regularly (once every 3 months) to ensure that accurate information is being reported. Log on to www.annualcreditreport.com to download your free reports (one free from each of the 3 credit reporting bureaus each year.)