Think of your credit score as a picture of your credit risk. This picture reflects your risk at a specific point in time. A picture does not change; however, when you take another one, you’ll probably look a little different. Similarly, when your credit information changes, your score will change to reflect the updated information.
Here are 5 steps you can take to ensure so each time a new “credit picture” is taken, it shows your best side.

  1. Pay all your bills on time. Late payments, collections, and bankruptcies have the greatest negative effect on your credit score.
  2. Check your credit profile regularly and take the necessary steps to remove inaccuracies. Don’t let your credit health suffer due to inaccurate information. If you find an inaccuracy on your credit profile, contact the creditor associated with the account or the credit reporting agencies to correct it immediately.
  3. Watch your debt. Keep your account balances below 50% of your available credit. For instance, if you have a credit card with a $1000 limit, try keeping the balance owed under $500.
  4. Give yourself time. Time is one of the most significant factors that can improve your credit score. Establish a long history of paying your bills on time and using credit responsibly. Consider keeping the oldest account on your credit profile open to lengthen your period of active credit use.
  5. Avoid excessive inquiries. A large number of inquiries occurring over a short period may be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can easily repay.

By observing the above guidelines, you can influence your credit worthiness for the better.