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Step 1
Pay all of your bills on time.
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Step 2
Pay your credit cards in full as quickly as possible, but continue to use the cards. Credit cards are one of the trickiest parts of building credit because carrying high balances damages credit, but failing to use them can also hurt credit. To build credit, try using credit cards for essential purchases that you know you can pay off in full.
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Step 3
Don't cancel old cards in favor of new ones. Older credit cards are worth more toward your credit score than new ones. Also avoid taking out more than one new credit card a year as taking out too much credit in a short period of time can hurt credit scores.
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Step 4
Order a credit report at least once a year and examine it for consistency. You can order a credit report online at annualcreditreport.com once a year. It is important to make sure the information credit reporting agencies have is accurate; any errors should be disputed immediately.
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Step 5
Ask for increased credit limits over time. The ratio of your available credit to your debt balance is important for calculating your credit score. If you have high credit limits with low balances, your credit score will likely be higher. Asking for higher credit limits every year or two can increase your credit score as long as you keep your actual balance low or paid off in full.
