Improving your credit score

Now that you know how your score is calculated, you can begin making changes to your current financial planning. The best things you can do are simple.
 

• Pay your bills on time. Sounds simple, but this is the biggest thing you can do to keep your score high. Delinquent payments and collections have a major negative impact on a score.
   
• Keep your balances low on unsecured revolving debt like credit cards. High outstanding balances can affect a score.
   
• The amount of your unused credit is an important factor in calculating your score. You should only apply for credit that you need.
   
• Make sure the information in your credit report is correct. If its not, dispute it with the credit agencies and/or with the creditor directly.
   
• Removing negative items on your credit reports has the biggest impact on your FICO score. Generally, negative items stay on your reports for seven years.