- Only apply for new credit when absolutely necessary. Too many new applications for credit can hurt your credit score.
- Close any unused credit cards but only if they were recently opened. This goes along with the previous tip to help you ensure you do not have too much recent credit open.
- Keep any old credit cards open even if they are unused. Not only is too much recent credit bad for your score, but having a longer history of credit is beneficial for your score.
- Avoid transferring debts to other accounts. This, too, creates more recent credit accounts rather than keeping older accounts. Paying off debts while under the original account is better than transferring it and then paying it off. There may be a trade-off with this since you may be able to lower your interest rate by transferring the balance and, thus, making it easier to pay off more quickly.
- Pay all bills and debt payments on time.
- Check your credit report at least annually to ensure there are no mistakes. Correct any mistakes you may find with the credit reporting agencies.
A few tips to keep in mind if you're trying to improve your credit score.