Today’s low interest rates make it a great time to borrow money for purchases such as a home, tighter lending requirements mean that only those with high credit scores can qualify for these rates, or in some cases even qualify for a loan at all. If a low credit score is holding you back, these simple ways will help you get on the right track.

• Pay on time. Prioritize the payment of bills that show up on your credit report and set up an organized bill-paying system so that you won’t miss a payment.
• Pay more than the minimum. The minimum required monthly payment isn’t there to do you any favors – it’s there to keep you in debt. Pay as much toward your credit card balance as you can each month. Lower balances are better for your credit score.
• Keep your oldest accounts open. The length of your credit history is 15% of your score, so even after you’ve paid down your balances, keep your oldest cards open. If you don’t have a balance, use these cards to make occasional purchases (then pay the bills in full), so the card company won’t close your account for inactivity.
• Stop opening new accounts. Having lots of recent inquiries on your credit report dings your score temporarily. If you’re planning to apply for an important loan in the near future, don’t apply for anything else.
• Avoid cash advances. Cash advances generally start accruing interest from the moment you take them out. They also come with fees and high interest rates because of the way most credit card agreements are structured, you won’t be considered to have paid off your cash advance until your entire balance is paid off. It means this will probably take you longer to pay off your debt and get it off your credit report.

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• Steps to use Credit Wisely
• Tips in getting out of debt!