How do I improve my credit score?

Because most creditors only report to the bureaus once a month, improving a credit score doesn’t happen overnight. However, there are a few steps you can take right now to start cleaning up your credit blemishes. Here they are:

• Pay your bills on time. Late payments and collections can have a serious impact on your score.
• Do not apply for credit frequently. Having a large number of ‘‘inquiries’’ on your credit report can worsen your score because it looks like you’re being turned down for credit and ‘‘shopping around.’’
• Reduce your credit card balances. If you are ‘‘maxed out’’ on your credit cards, this will affect your credit score negatively.
• If you do have any ‘‘unpaid’’ debt that you now have the ability to pay off, either do so, or try to set up a ‘‘payment plan’’ or settlement option with the debtor.If you have limited credit, obtain additional credit. Not having sufficient credit can negatively impact your score. (Even if you don’t like charging purchases, obtain a low-limit credit card, use it every month, and pay off the balance within thirty days.)
• When you do get your mortgage, be sure to always pay it on time. Late mortgage payments are one of the most significant blemishes that you can have on your report.