Types of Credit in Use: 10%–Considers the number of credit accounts and the mix of credit types: credit cards, installment loans, mortgages. This is most important if you don’t have a very long credit history.
1. Order a copy of your credit report annually. Correct any significant errors.
2. Pay your bills on time.
3. Don’t open a lot of new accounts over a short time period.
4. Shop for credit over a short period of time. FICO scores distinguish between searching for credit for a specific loan and searching for lots of different credit lines.
5. If you have a questionable credit history, open a few new credit accounts, use them responsibly, and pay them off on time.
6. Don’t open credit accounts you don’t intend to use.
7. A credit card or installment loan can raise your score as long as you don’t have too high a balance and you pay it off in a timely manner.
8. Keep your balance low in relation to your available credit. If your credit limit is $10,000, keeping your balance below $2,500 (25%) will improve your score.
9. Pay off credit card debt rather than move it around to lower rate cards. Moving balances to other credit cards and closing out the old account can hurt your score because it can change the ratio of your total credit card balances to your total available credit lines.
10. If you are a renter, odds are your Landlord does not report your rental history to the credit bureaus. Having a mortgage and paying on time however is healthy for your credit score.