Credit Score Articles The Top 10 Ways to Improve Your Credit Score Tip! Do your interest shopping within two-week periods. Each time you apply for a loan and the lender accesses your credit report, your credit score is lowered by 3 points. 10. Check your credit report every year. Knowing what your credit score is is the first step in improving it. In this age of identity theft you might find someone using your name and credit history and fix it before the police come calling. 9. Don't apply for new credit cards that you don't need. This could lower your score. 8. Try to keep your credit balances as low as possible. You can also ask the lender to increase your credit limit which can increase your credit score. 7. Correct any incorrect information on your report. Credit reporting agencies are notorious for the errors they have on credit reports. If you find an error call the credit reporting agency and tell them about it. If it is the bank or store's fault; get them to fix it. 6. If you have damaged credit consider opening new accounts and paying them off promptly. This can add 30 points to your score in a year. 5. If you do not have credit consider getting a secured credit card. This is a credit card where the consumer makes a deposit to the credit card company of $500 . for example. He then has $500. worth of credit on his card. This is a great way to establish or re-establish credit. 4. Pay bills on time, since any payments more than 30 days late will affect the credit score. Note that a bill issued March 15 with a due date of March 31 does not become 30 days late until April 30, but if you have the means, pay earlier rather than later. A single late payment may result in a drop of over 20 points. Tip! Pay with cash Using debit cards and cash are good ways to control your debt (and therefore maintain a great credit score). 3. To minimize the number of inquiries on your credit report don't apply for multiple credit cards . You also should not let banks do a credit check when applying for a mortgage. A mortgage broker takes one credit report and then shops around minimizing the effect on your credit. 2. After you buy a home don't go out and buy all the furniture to fill it. This will lower your score and pose a problem when the lawyers are closing the deal. Lenders often check your credit 5 days before closing and will refuse funding if the score has dropped too much. Don't be fooled by "Don't pay until 2007" ads. The full cost of the items purchased will be showing on your credit report and lower the score accordingly. Tip! Closing unused accounts is a negative strategy to raising one's credit score. Factually, fewer open accounts with the same amount of debt ultimately reduces a credit score. 1. And finally the Number 1 way to improve your credit score…. If you fall behind in your payments due to illness, unemployment or family issues TALK TO YOUR CREDITORS Arrange a payment schedule with them.. Talking to them is a lot better than having them call you with threats of foreclosure or bailiffs' seizures. David Cooke is a senior mortgage consultant living in Calgary, Alberta. You can find more information on mortgages in Canada on his website at: http://www.mortgagealliance.ca/davidcooke