Pay Bills on Time

• Since your credit score is largely determined by your payment history, make sure to always pay your bills on time.
  
  

Keep a Low Balance

• If you have credit cards, don't keep a high balance. If you must have a balance, try to keep it below the halfway mark of your credit limit.
  
  

Don't Apply for Too Much Credit

• Each time you apply for credit, it lowers your credit score. If applying for a home or car loan, be sure not to apply for any credit within 90 days.
  
  

Own a Credit Card

• If you do not have a credit card, getting one can help you establish or rebuild your credit. If your credit is particularly bad, you may need to get a secured credit card first. Be sure to use your card responsibly and pay off the balance each month. After a few months, you should see your credit score increase.
  
  

Review Your Credit Report

• You are entitled to a free credit report each year from Experian, Equifax and Trans Union. Sign up for a free report and review your credit history and follow up on any red flags. (See Resources section.)