20 Tips to Improve Your Credit Score

1. Pay your bills on time. Up to 35% of your credit score is based on this one tip.

2. Avoid excessive credit.

3. Pay down your debts. This will boost your credit score faster.

4. Have a range of credit types. Lenders like to see that you can handle different types of credit such as a mortgage, car loans, and credit cards.

5. Look out for identity theft. Always check your account statements at least once a month and report any suspicious activity immediately.

6. Beware of debts and credit that you don't use. Lenders are afraid that you might overextend yourself with several open lines of credit.

7. Be careful of inquiries on your credit report. If you have lots of inquiries on your report, it may appear that you are shopping for several loans at once and more of a risk.

8. Contact creditors as well as credit bureaus when correcting inaccuracies in your credit report.

9. If you have bad credit, establish better credit by taking out credit and repaying it quickly.

10. Try secured credit if you cannot qualify for other types of credit.

11. Don't choose bankruptcy as an easy out.

12. Learn to budget. Poor credit is generally caused by overspending. A budget can tell you how much you should be spending on each item in your life.

13. Get out of the spending habit. Instead of buying a book, go to the library. There are several way you can save money and pay off your debts faster by spending less.

14. Save. Most banks and employers will let you deduct a certain amount of money from your paycheck and put it into investments.

15. Keep track of your money. Impulse spending really adds up.

16. Don't move around a lot. Lenders like stability.

17. Don't change jobs frequently. Again, lenders like stability.

18. Avoid changing credit companies and credit accounts a lot. Switching accounts makes you appear fickle and less than reliable. Instead, see if you can negotiate with your current company to get a better interest rate.

19. Always be sure that your creditors know your current address. It may make you look like a deadbeat debtor which will cause your credit score to plummet.

20. Set aside a regular day, time, and place for paying bills. This will let you take care of your finances on a regular basis.