How to Increase Your Credit Score

Making your payments on time is a significant portion of your credit score - up to around 30% of the score.

What does this mean?

If you have 3 credit cards, each with a $10K credit line, you have a total credit line of $30K.

Never let your balances exceed $10K in total (or 33% of your total credit line).

Older accounts which have been well-managed help your score.

Older accounts imply you have experience making payments, and if those accounts have been managed well (paid on-time), this is a good sign.

I only have one open account, an old credit card.  My credit score is great.

All three of these have a powerfully negative impact on your credit score.

If you can avoid these, do it.  They will stick around for years tormenting your score.

Every time a lender pulls your credit on a loan application, an inquiry is added to your credit report.

If you have more than two inquiries, it's a sign you are either taking on a lot of debt or you can't get approved with other lenders.

Inquiries only stay on your report for a few months.