 TITLE: Why Do Higher Credit Scores Mean Better Interest Rates? CONTENT: How to Improve Your Score to Get Better Rates\n---------------------------------------------\nHaving a good credit score is valuable for numerous reasons, and not just for scoring the lowest interest rates. If you want the best chances of getting approved for loans or credit cards at the lowest interest rates, it's time to get cracking on improving your credit score.\nHere are a few ways to improve your credit score before you apply for new forms of credit:\n*   **Keep your credit card balances low.** Your credit utilization ratio tells lenders how much of your available credit you're using at any given time. Using more than 30% of your credit limit is risky in the eyes of lenders and may lower your credit scores, so try to make sure your credit card balances stay well below your credit limit.\n*   **Make on-time bill payments.** Late or missed payments can really ding your credit score, so pay every bill on time. This includes credit cards, loans and utilities. Set up calendar reminders or autopay if you have trouble remembering when bills are due.\n*   **Don't close accounts unncessarily.** Open credit card accounts contribute to your credit limit and may help keep your utilization rate low, so try to keep them open. If it's a credit card you rarely use, just set up a calendar reminder to use it a few times a year to keep it active. If you don't want to pay the annual fee on an unused credit card, consider asking the card issuer to keep your account open but \"downgrade\" the card to one with no annual fee.\n*   **Check your credit report.** Review your credit report periodically to spot potential fraud, review trouble areas such as high debt and dispute any potential inaccuracies. Checking your own credit report won't lower it, so feel free to check it as often as you like. You can check your credit report for free through Experian or at AnnualCreditReport.com. END