Improving Your Credit Score:
A good credit history is one of the most important aspects of financial health. Good credit allows you to quickly obtain credit at the best possible interest rate, saving you money over the life of the loan. Good credit can even help you get the job you want, because some employers believe that people who keep their financial agreements are also likely to be responsible employees. Simply put, good credit can enhance your life both personally and professionally.
When you obtain any kind of credit or loan, the lender reports your repayment history to the major credit card bureaus. This information forms the core of an individual’s credit report and credit score, and is what lenders analyze when deciding whether or not to extend the credit.

Your credit score is a variable number that can fluctuate as the items on your credit report change. Different factors have a positive or negative affect on a score. For example, your total debt, the number and types of credit accounts, the number and severity of late payments -- if any -- and how long the accounts have been open all impact your credit score.
Credit Bureaus are governed by the Federal Fair Credit Reporting Act (FCRA) and companion state laws. Legislation allows positive information to be listed in your credit files indefinitely, although it is generally removed after ten years. Accurate negative information such as late payments (also known as “derogs” or “dings”) may remain up to seven years. Bankruptcies may remain on your credit report for up to ten years, and unpaid taxes and liens remain for fifteen years.
Your Success at establishing and maintaining good credit depends on your ability to make wise decisions about the type and amount of credit you use. A general rule is to commit no more than a third of your income to the repayment of all debt, including mortgages, credit cards and consumer loans. A smart consumer won't allow debt to build to the point where it is difficult to make timely payments and reduce the overall amount of The most important rule for maintaining good credit is to pay your bills on time! To do this, limit your purchases to keep your total outstanding debt within a reasonable range -- even if your credit limit is much higher. If you abuse your credit and damage your credit rating, you may have to pay much more for future credit or be unable to purchase goods and services you want.
HOW CAN I IMPROVE MY CREDIT SCORE?

BILLS. Pay your bills on time. Apart from circumstances like foreclosure, bankruptcy or tax liens, nothing has a more negative impact on your credit scores than late payments. If a payment is received even one day past the due date, it is considered 30 days late, and those received more than 30 days late can seriously hurt your credit standing.

Debt. Make it a priority to pay down existing debt as quickly as possible within your budget limitations.

Credit cards. Limit the number of credit card accounts you maintain -- fewer is generally better. Keeping a few charge accounts active and paying the full balance in full by the due date is the optimum scenario and will raise your credit score. If you do not pay off your balances, keep overall balances low and use credit cards only for emergencies or purchases that have long term value. “Maxing out” your credit cards will have a negative effect on your credit score.

Don’t apply for credit you don’t need:  Applications for credit show up as inquiries on your credit report, indicating to lenders that you may be taking on more obligations. Numerous inquiries on a credit score can lower your score. Use the credit you already have to prove your ability to manage credit responsibly.

No credit score? Credit scoring models cannot generate a score if there is not sufficient credit information in your records. If you have little or no credit history, you will probably not have a credit score. Apply for a retail, gas or secured credit card to begin your credit history, then keep your outstanding debt low and pay your bills on time.