 TITLE: What Is Tier 1 Credit? CONTENT: How to Get Tier 1 Credit\n------------------------\nThere are plenty of actions you can take to improve your credit score and work toward achieving excellent credit. Here's how:\n### Pay Your Bills on Time\nGet into the habit of paying every bill on time. Payment history is the biggest factor in calculating your credit scores, and thus your credit tier, so make this a top priority. Even one late payment on your mortgage, credit card or other bill can lower your credit score, so on-time payments are essential.  \n### Pay Down Debt\nPaying down debt is easier said than done, but carrying large balances on your credit cards raises your credit utilization ratio—the amount of debt you have relative to your total available credit. Most lenders prefer a utilization ratio of 30% or less, but the lower the better.\nWhat can you do to pay off debt? Reducing your debt load can be a long process, but your first step should be to review your existing accounts so you know exactly what you owe. Next, create a budget that allows you to put as much money as possible toward paying down your debts.\n### Apply For and Open New Credit Accounts Only As Needed\nWhile it may be tempting to open new credit accounts to make major purchases or to take advantage of promotional credit card offers, frequently applying for credit can take a toll on your credit score. Carefully consider whether a new account is justified, as credit applications require a lender to pull your credit report, resulting in a hard inquiry. Too many hard inquiries on your credit report will lower your credit score.\n### Dispute Any Inaccuracies on Your Credit Reports\nCheck your credit reports with the three major credit bureaus (Experian, TransUnion and Equifax) for any information that shouldn't be there. Incorrect information may indicate fraud or identity theft. Make sure that all of the accounts listed on your reports are correct and dispute any inaccuracies to get them resolved as soon as possible. END