| Step 1: Since a credit score helps determine if you're | | | | thing you can do is to begin paying all bills on time |
| eligible for a credit card or loan, and what rate you | | | | immediately. Repeated prompt payments are one of |
| may pay, you first need to know your own credit | | | | the fastest ways you can improve your credit score, |
| rating. You can get a free credit report once per year | | | | and also show lenders that you are a responsible |
| at This free report will tell you all the reasons your | | | | person. |
| score might be low. A credit score is different from a | | | | Step 4: If you are new to the world of credit and have |
| credit report, and must be purchased in most cases | | | | not yet built a credit history, it's fairly simply to begin the |
| (keep reading to find out how to get your score for | | | | process. You might want to start simply with a small |
| free). It is an important piece of information to know | | | | personal loan, with a responsible co-signer, such as a |
| about yourself. | | | | parent or spouse. Once you've obtained the credit with |
| Step 2: If your report states that you've used too | | | | this person's help, just be sure to pay the credit off |
| much of your available credit, stop using your credit | | | | exactly as agreed with the lender. This responsible |
| cards! You really need to decrease the balances on | | | | behavior will lead to a great credit score. |
| your cards. And, be sure to pay at least the minimum | | | | Step 5: Finally, keep in mind that you will be allowed to |
| due on all credit cards. You also want to be sure that | | | | explain any negative marks on your credit report when |
| you don't use too much of the available balance on | | | | you are applying for credit. At that time, be sure to |
| any one card, as this can also bring your score down. | | | | show the lender that you've been following these |
| Step 3: If your report shows that you've paid bills late, | | | | steps to improve your credit score. |
| this will affect your score for some time. The best | | | | |