Your credit score can be the key to obtaining lower rates for insurance, better rates for loans and can even impact your ability to get some jobs. A credit score is seen as a quick indicator of your ability to repay debt obligations like loans. One of the most common credit scores used is called the FICO (Fair Isaac Corporation) score. If you have a high credit score, you are seen as a good credit risk and a good manager of your finances. If you have a low credit score, you are seen as a poor credit risk that has difficulties managing personal financial matters.

If you want to increase your credit score so you will have a better shot at a job, to get lower interest rates for loans or to qualify for a home loan, there are some steps you can take. While not every factor that contributes to a credit score is known and some things may be out of your control, there are some actionable things you can do to positively impact your credit score. Learn how to increase your credit score through logical and straightforward steps.

One of the biggest components of your credit score is paying your bills on time. Consider using an online bill pay service that can help you manage your routine bills and makes paying bills easier if you have problems organizing your bill payments.

If you are having trouble paying your bills on time due to financial constraints, it is better to contact your credit card company to work out a deal than to pay your bills late.http://www.smartmoney.com/personal-finance/debt/keeping-score-13273

How much of your credit you currently use makes up a large component of your credit score. If your credit cards are consistently near their credit limit, it will lower your score.

Increase your credit score by trying to keep your credit card balance to less than 30% of your available credit. This percent is valid for both each card and for your overall credit portfolio. If you are paying down credit cards, start with the card that is closest to your credit limit to help increase your credit score.http://articles.moneycentral.msn.com/Banking/YourCreditRating/7FastFixesForYourCreditScore.aspx

If you have low credit limits on some of your credit cards, consider asking for a credit increase. You’re your credit is increased, it will help lower your credit usage percentage and can increase your credit score.http://articles.moneycentral.msn.com/Banking/YourCreditRating/7FastFixesForYourCreditScore.aspx

Every time you sign up for a new credit card, apply for loans or authorize your credit to be checked, it can hurt your credit score. You can increase your credit score by limiting the number of requests that are made on your credit. Automatic credit checks by existing creditors like credit cards do not count against your score, only new requests.

If you know you will be applying for a large loan like a mortgage or a car loan in the near future, don’t apply for any other types of credit beforehand so your credit score will be as high as possible.

A strong component of your credit score is the length of your credit history. Some credit cards stop reporting your credit information to credit bureaus on dormant or unused accounts. Help increase your credit score by using old credit cards every few months. http://www.smartmoney.com/personal-finance/debt/keeping-score-13273