10 Tips To Make My Credit Score Higher

By: Stephanie Mojica

Break Studios Contributing Writer

Are you thinking to yourself, "I could use 10 tips to make my credit score higher." Learning and practicing these tips to make your credit score higher can save you a lot of money and embarrassment over time. Your credit score not only determines how much interest you'll pay on credit cards and loans, but also how much your car insurance policy costs each year. Some jobs and apartment complexes also require a good credit score.

One of the most crucial 10 tips to make your credit score higher is to check those credit reports each year. This helps ensure that there are no credit reporting errors that can unfairly drag down your credit score. Remember that the only website approved by the Federal Trade Commission for your free credit report is AnnualCreditReport.com.
Borrowing only as much as you really need will greatly help your credit score. A lot of debt does not aid your credit rating, and may actually cause you to be denied really important things in life, such as a home mortgage or new auto loan.
Keeping those card balances as low as possible is one of the best tips to make your credit score higher. If you're constantly "maxing out" those cards, you appear to be much more of a financial risk to lenders than the average consumer.
Always pay your bills on time, including utility bills. This will certainly help to make your credit score higher.
Another key tip to make your credit score higher is to only apply for credit when you really need it. Too many credit applications can also negatively impact your borrowing ability.
Keep your oldest credit card accounts open. This increases the "age" of your credit file and, effectively, your credit score.
Try not to open new credit card or loan accounts before applying for a car loan or mortgage. Too many new accounts decreases your credit score and also increases your risk level in the eyes of potential lenders.
Paying more than the minimum payment due each month is another essential tip to make your credit score higher. Remember that the credit scoring system wants responsible use of credit; paying only the minimum is not good for your credit rating or your wallet.
Have more than just one type of credit account. The best credit scores have a few "balanced" choices in the consumer credit profile, including a major credit card, a retail credit card, a personal loan and perhaps a car loan, student loan or mortgage account.
Only close existing accounts if you absolutely must do so. Canceling that old, unused credit card could dramatically hurt your credit rating. Keep the accounts you have and don't open new credit cards if you're concerned about having too many pieces of plastic. Just because the card is open doesn't mean you have to use it!