If your credit score is considered "average" or "poor" — anything lower than 650 — you will want to take immediate steps to make it "good" or "excellent," which is typically considered a score of 700 or above. Your ability to get financing may depend on this. Here are some ways you can improve your credit score today:
Keep credit card balances low
FICO scores, the most popular credit scoring method used by lenders, weigh 30 percent of your credit score on existing amounts owed on credit accounts. A 10 percent credit utilization is ideal when improving your credit score. To find your credit utilization ratio, add up what you owe and divide it by your total available credit.
Avoid impulsive retail decisions
Making hasty decisions often ends in credit complications down the line. Credit reporting expert Randy Padawer warns shoppers against retail credit card solicitations at the checkout counter that promise a discount on purchases. "Too many cards may paint you as someone who depends upon borrowed money just to get by, and that's why credit scores almost always suffer in turn," he says.
Look for errors on your report
It's on your shoulders to do your due diligence in spotting errors on your annual credit report. If you find a discrepancy, report the issue to credit reporting companies as soon as possible. According to the Federal Trade Commission, companies typically must investigate disputes within 30 days of receiving a correction request.
Make timely payments
