Credit Score Articles How Can I Improve My Credit Score? Tip! Instead of opening up a number of credit cards to raise a credit score, find a credit card with a low APR to consolidate onto one credit card. However, caution is advised on people with a short credit life in opening a number of credit cards because it can ultimately lower a person's credit score, accounts for 15 percent of a person's credit information. Having poor credit will not only hurt your chances for loan approval when applying for any type of credit, loan terms, interest rates and approval amounts will also be affected even if approval is achieved. Step 1: Get a copy of your credit report! The first step towards improving your credit is to get a copy of your credit report. This will allow you to get a thorough view of what accounts you have open, how much you owe, and if there are any errors and/or outdated information present on your credit file. Step 2: Open a bank account A bank account will not be listed on your credit report. However, a bank account number will be required when applying for any type of loan or credit credit. Make sure you keep your bank account in good standing. This entails not overdrawing your account. Meaning, never write checks for funds you do not have! When you bounce a check you will be charged a fee by your bank as well as the company you wrote the check to. Bounced checks also have a very negative impact on your credit score. Step 3: Apply for a credit card Using a credit card wisely is one of the best methods for building/improving credit. There are many credit card offers that are designed for people with bad credit, or no credit. These types of cards will report your account activity to all three major credit reporting companies every month! Therefore it is important that you make your payments on time each month and that you don't carry a balance that is more than 20% of your available limit. After several months of responsible credit card use, you will not only see a dramatic improvement in your credit score, but you will be able to apply for a card with more favorable interest rates and terms with a higher credit line. Tip! Once you find a lender, ensure that you complete their application form, thoroughly. Remember that you are competing with other applicants, who have excellent credit scores. Step 4: Put some utility bills in your name Another simple means of improving your credit score is to put the electric, cable, phone, water, or any other type utility bill in your name. Almost every type of utility account will report account activity to all three reporting bureaus every month. Therefore, make sure you pay your bill, in full every month! Jacob Joseph is a financial expert for http://www.starloanservices.com. At Star Loan Services you can get a free credit report copy.