Tips on Building Your Credit Score

Good credit rules over your financial life.

A good credit score not only determines the types of credit cards you can get, but affects your ability to buy a house, rent a car or sign-up for utilities. Specific strategies, as suggested by the Federal Reserve, can help raise this number.

Manage Credit Lines

Do not open lines of credit that you don't need. At the same time, do not close unused credit lines. Closing lines may reduce your credit score because you have less credit available to you.

Use Revolving Accounts

Use your credit cards regularly, but only enough so you can pay off the card in full when it is due. Paying your bills on time updates your score regularly and shows that you are a good credit risk, which raises your score, according to MSN Money.

Deal with Errors

If you find errors in your credit report, deal with them immediately by phoning the credit reporting companies and informing them. You will most likely need to submit a written request, but they can tell you the correct procedure, and take immediate action, such as putting a hold on any new accounts in case of identity theft, advises the Federal Reserve.

References

• Federal Reserve: Improving Your Credit Score
• MSN Money: Nine Ways to Build Credit