Credit Advice

If you have only been managing your credit for a short period of time, don't make the mistake of opening a number of new accounts around the same period of time. These new accounts will decrease your average open account age. A low average account age has a negative impact on your credit score. In fact, a low average account age negatively impacts your credit more than a lack of open accounts.

Try to keep your revolving credit as low as possible. Credit cards qualify as revolving credit. If you have a large amount of credit card debt, do what you can to pay down these balances. Transfer balances only if you can get an interest rate significantly better than the one you have. Moving debt around has a negative impact on your credit score.

Tips on Improving Credit

Having open credit cards will help your credit score if you responsibly use these cards. If your credit card balances hover around their maximum credit limits, then your credit score will suffer. Manage your credit cards responsibly and only use them for emergencies or if you have the means to pay more than the minimum monthly balance each month. Only spend what you can truly afford.

Pay your bills on time and keep your credit card balances low. It's that simple. Don't open up a bunch of new credit cards to improve your credit score. That will decrease your score in the short term by lowering your average account age. In addition, get a credit report at least twice a year to make sure there aren't any discrepancies. Keep a close eye on your credit.