Keep your credit card balance (if you carry one) to less than 30% of the available limit. This will help your credit score. The more of your available credit you use, the more it hurts your score.

Want to Improve your Credit Score?

Here’s some helpful hints . . .

1. Pay on Time

Be sure to pay at least the minimum on all forms of debt and bills ON TIME. Late payments are reported to the credit bureaus and are reflected in your score. You should try and pay more than the minimum on your debts (or even better, the full balance) to try and pay down debt – but as long as the minimum is paid the creditors will be happy.

2. Watch Your Debt-to-Credit Limit

You should try and keep the balances on your debt – particularly revolving credit (credit cards and lines of credit) – to below 50% of your available credit limits. The less you use, the better it looks on your report.

3. Don’t Over-apply for Credit

Every application you make for credit – at the bank or for a store credit card – is reported on your credit report. The more you apply for credit the more you make creditors nervous that you’ll rack up all this debt and not be able to pay for it.

However, if you think you may be turned down by some institutions, keep your applications to a 2-week application window. That way it just looks like your trying to get a good deal on your interest rate. If your applications are denied do NOT apply for more credit until at least 6 months go by.

One important myth: checking your own credit report or score does NOT lower your score, it has no effect on your report at all.

Its important to check your credit report and score at least once a year to make sure you can get the credit you need when you need it.

Trying to pay off your credit card? See if you can get a credit card with a low introductory interest rate and do a balance transfer.

The lower your interest rate, the more of your payment goes to principal instead of interest and the faster you’ll pay the card down.

Be sure not to put any new purchases on the new card if the low rate is only for balance transfers. Try and pay off that card before the introductory rate expires, it may go up to a high rate once the introductory period is over. Read the brochure that comes with the card carefully before using, read the fine print!

And, do NOT use your old card, cut it up!

Are you paying the “Standard Rate” on your credit card? If you’ve been a good client (i.e. you haven’t missed any payments). Call your credit card company and ask them to lower your interest rate.

Do you have a credit card that gives you rewards like Airmiles or Cashback? If you take away these features and get a “No Frills” card that may automatically lower your interest rate, since credit card companies tend to charge a premium for these “special” cards. And, you may save extra money by forgoing an Annual Fee!