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Improve your credit score by following these five suggestions:

1. PAYMENT HISTORY (35%)

Timely payment history accounts for approximately 35% of your credit score, which means that paying on time is one of the most important things you can do. Even if you have to pay one credit card with a balance transfer check from another credit card, make the payment on time. If you’re behind, get caught up and stay current. If you’re struggling call your credit card companies to work out a payment schedule.

2. KEEP LOW BALANCES (30%)

Your balance-to-limit ratio account for about 30% of your fico score. Having credit cards that are maxed out hurts your score. 25% is the golden rule. If you can keep your balances at 25% of the limit, you’ll be good. 50% should be the max for good credit. Even if you use your credit cards and pay them off in full every month, going too high will increase the average and hurt your score.

3. LENGTH OF CREDIT HISTORY (15%)

The longer you’ve had the account the better. This is why when people close their accounts their scores can drop. Also, opening several new accounts could bring the score down since it lowers the average age of the accounts

4. NEW CREDIT REQUESTS (10%)

Every time a potential lender asks for a copy of your credit report, an inquiry is recorded. A certain number of inquiries is okay (3-5 per year). If you’ll be applying for a mortgage or auto loan, don’t apply for any new credit beforehand. If you opt out of receiving credit card solicitations, this can also improve your score.

5. CREDIT ACCOUNT VARIETY (10%)

Having different types of credit accounts will show that you can manage various types of debt. For example it’s good to have both revolving debt (credit cards) and installment debt (auto loans and mortgages). Variety is the spice of life.