Going on a diet and raising your credit score have something in common because both of them take time, and they require a certain amount of patience as well.   I know what you’re thinking, “can I actually increase my credit score or is it a lost cause?”  As a rule, making timely payments on your installment loans and credit cards will tend to have a positive effect.

Getting your credit report

You can do this every year for free at annualcreditreport.com, and it will include your credit score. Taking this step will not have a negative impact on your score if you request the report from a major credit-reporting agency, or from another authorized group. Once you receive the report, make certain that no one is breaking the law by using your credit, and if an item seems questionable, contact the agency at once to resolve the matter and help improve your credit score.

Here are some other things you can do to help improve your credit rating:

• Apply for new credit accounts on an as-needed basis, rather than on a whim.
• Keep your existing accounts current. Collections and delinquent payments will have a serious negative impact on your credits score, and late fees are both expensive and annoying.
• Maintain a low balance on your credit cards and installment loans. This financial “cushion” will indicate that you are doing well in managing your finances and help to improve your credit score. Closing unused accounts will also prove to be helpful on a long-term basis, when combined with this strategy.
• Avoid opening credit card accounts simply to have more available credit as this may trigger a number of inquiries related to your credit history and lower your credit score. Your credit score will also improve if you have no inquiries over a two-year period, because lenders will take this as an indication that you are financially stable.
• When you are looking for the best rate for a specific loan, try to complete the process within a reasonable length of time. FICO scores can determine the difference between your search for an individual loan and your search for several new lines of credit.
• If your credit history is brief, go slowly when it comes to opening several new accounts. This will lower the average age of your accounts, which will have a negative effect on your score because other information is lacking. Lenders generally assume that rapid account buildup is risky for anyone in your situation.