 TITLE: These Tips Can Help You Improve Your Credit CONTENT: Steps to Improve Your Credit\n----------------------------\nYour credit report shows how well you've managed your financial responsibilities over a certain time period. The information in your credit report determines your credit score, and the most commonly used credit score—the one calculated using the FICO® Score☉ model—ranges from 300 to 850. The higher your FICO® Score, the better (and the same goes for any other scoring model). Negative credit report information drops off over time, but positive information sticks around a bit longer, sometimes indefinitely. To establish a positive credit history and help improve credit scores:\n1.  Pay your bills on time. Because payment history accounts for 35% of your FICO® Score, this should be your top priority when focusing on improving credit. While you can't remove past missed payments, you can take steps to avoid them. And it's never too late to make a commitment to building a spotless payment history.\n2.  Set up a budget, and live within it. After payment history, credit utilization is the second most important factor, making up 30% of your FICO® Score. Experts recommend using no more than 30% of your available credit at any time, but those with the highest credit scores often use much less than that. Ideally, you'll pay off credit card balances completely each month—which likely also means making a budget and avoiding purchases that you can't comfortably afford that month.\n3.  Thoughtfully apply for new credit. Your credit score will suffer if you frequently apply for new credit cards or loans. Lenders may assume you're a risk if you're looking for more credit because you've maxed out the accounts you already have. Only apply for the credit you truly need, especially just before you seek out a mortgage or other major loan, where a drop in your score could cost you an approval.\n4.  Use personal data consistently. Providing complete, accurate and consistent identification on your credit applications helps set up your credit history correctly from the beginning. It also minimizes the chance that your credit file will be incomplete or mixed with another consumer's file. In the worst-case scenario, another consumer could accidentally—or fraudulently—use your personal information to establish credit accounts that end up on your credit report, and if they go unpaid, lower your score.\n5.  Avoid closing your oldest accounts. Length of credit history accounts for 15% of your FICO® Score. Lenders prefer to take on borrowers who have a wealth of experience managing credit, so long credit histories will contribute to high credit scores. If you're tempted to close old credit cards you no longer use, pause and consider keeping them open to maintain a longer credit history. But closing accounts can be advisable in certain circumstances, such as if the card carries a high annual fee or is otherwise problematic for your finances.\n6.  Look to professionals. If you need credit help or if you don't have time to develop your own plan, quality nonprofit credit counseling organizations can help consumers understand credit reports, contact creditors, manage debt and set up budgets. END