Understand the Calculations

There are a number of tips that you can use right now to improve your credit score. A credit score is used by lenders, card companies and several other entities to gauge credit worthiness. Understanding how it is calculated, using credit responsibly and utilizing a credit monitoring program are some of the things you can do to quickly improve your score.

Credit Score Tip: Understand The Calculations

Scores are calculated using a number of criteria. These include:

• Payment performance history; the number one tip is to pay bills before they are due every month.

• The current level of debt affects your score and helps lenders and credit card companies determine the additional amount of debt that can be tolerated.

• The length of credit history also impacts your score. In the old days, experts advised closing old accounts but now we're told to keep accounts with solid payment histories open.

• Multiple credit card and loan applications at one time may indicate some financial issues or problems and are factored into the score.

• Different types of accounts in a credit history can improve a credit score. Lenders like to see a mix of credit cards, loans and other lines of credit to see how effectively the debt is managed.

Credit Score Tip: Improve Your Score with a Credit Monitoring Program

Scores improve with a credit monitoring program. Ordering a credit report offers a starting point to understand how credit worthiness is determined by lenders and card companies. Experian's Triple Advantage credit monitoring program provides a credit report, current score and tips on how to improve. When you order your report, verify that all information in your history is accurate. Errors in credit reports are not uncommon and it's your responsibility to fix any mistakes. Reporting errors can be easily corrected by contacting the reporting credit bureaus. Monitoring programs will also immediately notify you about any suspicious activities on your credit report.