| Your credit score has a very large impact on many | | | | the actual limit. This should be in the form of a written |
| aspects of your life. It can affect your ability to get a | | | | letter. If you have proof that the information reported is |
| car, personal, or house loan. It can also affect the | | | | not factual, this should be mailed along with the letter. |
| interest rate that you would pay for any of these | | | | 3. Pay down credit card balances. Lending institutions |
| loans. It is very important that your credit be as high as | | | | look at how much credit you have used compared to |
| possible. | | | | the amount available to you. Most companies |
| 1. The first step to improving your credit score is to | | | | recommend that people who use credit cards never |
| request a copy of your credit reports. Make sure to | | | | charge more than half of their credit limit. This shows |
| request a report from each of the three major credit | | | | lenders that you have restraint and that you do not |
| reporting agencies. You can do this for free once per | | | | overextend yourself in terms of credit. |
| year. It is important to look at a recent copy of your | | | | 4. Pay your bills on time, every time. Late payments |
| credit report to determine if any errors have been | | | | can cause large drops in your credit score, so it is |
| reported against you. | | | | important to avoid them at all costs. If possible, try to |
| 2. Report any errors that you find to the credit | | | | set up automatic withdrawals from your bank account |
| reporting agency. These errors can include late | | | | so that your payments will never be late. Making your |
| payments that were not late, accounts that are not | | | | payments on time is one of the best ways to quickly |
| yours, and credit limits that are reported as lower than | | | | improve your credit score. |