- Pay every bill on time. Even one late or missed payment can dramatically decrease your score.
- Pay down the cards with balances close to the maximum first. You’ll get points deducted from your score anytime you charge more than 50 percent of the limit on any kind of credit card.
- Do not cancel. Closing credit card accounts can actually hurt your score. Here’s why: You’re graded based on the percentage of credit you have available that you’re using. If you close some accounts, your overall credit limit will decrease and you’ll owe a higher percentage of the total. Better to pay off the cards and stuff them in a drawer.
- Check your score again in six months. That’s enough time to see a 50-point improvement — which gives you a decent chance of qualifying for a low-rate credit card.
To keep track of your credit score, you can request one from each of the three agencies every four months on a rotating basis and check your report for accuracy. Just go to AnnualCreditReport.com for more information.