Here are some steps you should take. First of all, get a copy of your credit report from each of the three credit agencies. You can do this once a year for free by logging onto Annual Credit Report.com. The first thing you need to do is correct any mistakes that you may find in your credit report. For example, the credit report may list an outstanding credit card or loan that does not belong to you.
The biggest way to keep or increase your credit score, also known as your FICO score, is to pay your bills on time. If you happen to be behind on payments, work on getting current and staying current. If you're having problems, get some help. In New Hampshire and Vermont you can contact the Consumer Credit Counseling Services. They are a nonprofit organization that has done an excellent job at counseling people with credit problems.
High balances and a high ratio of the amount you owe to the total available credit will also lower your credit score. Paying extra to get your balances down will help to increase your credit score. Remember, if you're planning on getting a new loan in the near future, don't close unused credit card accounts. This will affect your ratio and potentially lower your credit score.
Many people will move from one credit card to another to get a lower interest rate. I've been told that this too can lower your credit score by decreasing the average age of accounts.
Finally, in this day and age credit scores are important for almost everyone. Not only do they affect your ability to get a loan, they can also increase your cost for car and home owners insurance and affect your ability to gain new employment.
