Different credit scoring companies use slightly different statistical models to calculate credit scores. However, all of them put a lot of weight on paying your credit card bills, loan payments, and other debts promptly. To improve your score, make at least the minimum required payment each month by the due date found on your billing statement. Mail payments well in advance of when they are due in case the mail is delayed, or consider using online banking or automatic loan payments that are deducted from your checking account.
A second way to increase your score is to avoid "maxing out" your credit cards. A number of experts say that to get the most favorable score, none of your balances should exceed 30 percent of that card's credit limit. Don't overextend yourself by borrowing close to the maximum limit of your credit accounts. The fewer accounts you have open and the lower the outstanding balances on them, the better your credit score will likely be. You'll also get points for the length of your credit history, so don't close your oldest accounts that establish your longevity as a credit user.
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