Let's face it, the lower your credit score the higher your interest rates. A better credit score gives you better deals on interest rates for loans and credit cards. So if your score is below 760, then its time to do something about it.
Credit Cards
If you do not already have a credit card, now is the time to get one. Use it to make small purchases each month and pay it off the day that bill comes in. This will show a revolving credit line that is in good standing -- raising the credit score. If your score is too low to get a regular credit card, then get a secured credit card. These types of cards require you to place a deposit on the card of $250 or higher, but it will report to all three credit bureaus.
Pay Down Credit Cards
Your credit score is affected by high debt to available credit ratios. To improve your credit score you need to pay down credit cards to bring the balance owed down close to $0 and less nearing the maximum credit limit.
Pay Down Debts
Your credit cards should not be the only debts you are paying off. Pay off any outstanding debts that are in your name including student loans, auto loans and even medical bills.
Pay Bills on Time
Your payment history can affect your credit score as well. Start paying your debts on time and ensure that you avoid late charges or late payments on anything in your name, even your electricity.
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