Having a good credit score is very important for many reasons. Your score will be a factor when seeking loans, renting an apartment, applying for a credit card, and more. This makes it important for you to have the best score possible.

Are you wondering how to build good credit or improve your existing score? You can follow a few easy credit tips and tricks that may get you on the road to financial success.

Pay Your Bills On Time


Although it may sound simple, paying your bills on time is one of the best ways to improve your credit score. All of your on-time payments will show that you can be trusted to meet your financial obligations. This has the potential to raise your score over time.

If you are having trouble paying on time, consider changing your habits. Set aside money from your paycheck to cover your expenses when your bills arrive. When possible, you could also set up automatic payments online. Never allow yourself to spend this money for different purposes.

Keep Old Accounts on Your Credit Report

It may sound strange, but never remove old accounts from your credit report. They show that you have successfully paid off past debt and been responsible with your finances.

Never call and try to get an old account removed unless it's a negative item. If it isn't negative, your credit report will no longer show the positive payment activity from that account. Your credit score could drop because of this.

Consolidate Your Cards and Balances

Take inventory of your credit cards and work on consolidating your balances if many exist. Even if you only owe less than $100 on each account, it can harm your credit score.

Pay off all of your credit card balances and only use one or two in the future. This will ensure that you will have the best score possible, as your credit card balances are taken into account when your score is calculated.

Use Credit Cards Responsibly

One of the easiest ways to maintain a good credit score is to use credit cards responsibly. This means that you should not spend more money than you can afford.

Additionally, use these cards for needs instead of wants. You should always try to keep your total balances below 30% your credit limits.

Review Your Credit Reports

Even if you follow all credit tips, it is still important to review your credit reports to ensure that mistakes are not being made. You can do this by requesting free copies from Equifax, Experian, and TransUnion once every 12 months.

After you receive your first copy, carefully review it for any errors. If you find mistakes, correct them as soon as possible. Repeat this process again four months later by requesting your report from a different credit bureau. Four months after that, request your report from the third bureau. Doing this will allow you to keep tabs on your credit year-round.

Purchase a Car

If you need a vehicle and meet certain requirements, consider getting an auto loan to help improve your credit score. Making all of your loan payments on time has the potential to give your credit a boost if that loan is reported to credit bureaus.

You can begin the process today by applying with Drivers Lane. Our team will match you with a car dealership that will give you your best shot at being approved for an auto loan. We have assisted thousands of people with bad credit in the past, and there's a good chance we can do the same for you.