Your credit score is the most important part of your financial life. When you apply for credit - whether it’s a mortgage, credit card or any personal loan, your score helps the creditors assess your credit risk level. But wait, if you are thinking that your score affects only your financial life, then you are wrong!! Your poor score can even make that dream job of yours slip through your finger tips. Nowadays, many companies run credit reports on candidates whom they are planning to employ. From mortgage to jobs and even cell phones, your score affects every aspect of your life. Hence, you must take proper steps to maintain a good score.

Paying your bills on time: Making timely payments is the best way to increase your score. Late payments charge offs, collections will decrease your score. Your recent payment history carries more weight than what happened four years back. So, get in the habit of paying off your bills on time to rebuild your score.

How to Fix Your Credit Score

Don't close old, paid-off credit accounts: A long credit history has a positive influence on your score. Multiple accounts in good standing with zero balances will help you in rebuilding your score. When you are closing down old accounts your total available credit shrinks, which makes your balances look larger, which in return hampers your score. Closing your oldest accounts will also reduce the duration of your reported credit history and will make you seem less credit-worthy to the lenders.

Pay down debts: If you have debt, then it is advisable to pay it off. Juggling from one credit card to another is not an option. Just moving around your debt implies that you are doing nothing to pay your debts off. So, start budgeting to get rid of your debts.

Do not make frequent credit inquiries: Each time you make an inquiry for credit, it’s reported to your credit report. Multiple applications for credit imply that you are looking out for more credit or that you are going through some kind of financial trouble. It basically implies that you are not able to handle your credit wisely.

* Do not max out on cards: Always keep balances low on credit cards and other revolving credit. High outstanding debt can badly affect a score. * A mix of credit is advisable: It is usually believed that if you have different kinds of account like an installment loan, retail accounts credit cards then lenders consider you credit worthy. It in a way reflects that you have experience in handling a mix of credit. However, you should not open accounts hastily for the sake building scores.

These are some of the ways that can help your credit score go up. However, you should always remember that rebuilding one’s score is not a task that can be done is seconds, it needs time. However, it is certainly in your best interests to take these steps so that your score improves.