The 5 Best Ways to Improve Your Credit Score

Of all the painless ways to save money, improving your credit score could be the most important. A good credit (FICO) score can save you a small fortune in rates and terms on everything from home and car loans to credit cards and car insurance. Follow these words to the wise.

• Pay all your bills on time. Seriously. Just do it. Your payment history makes up 35% of your FICO score.
• Raise your credit limit. This will expand your credit. But only do this if you trust yourself to stay tame on your spending (you know who you are).
• Keep old cards active. Closing out a credit card can actually lower your credit score because your length of credit history counts. Try using an old card to pay for one recurring thing, like a utility bill.
• Under-use your credit cards. Ideally your credit utilization ratio (your card's balance divided by its credit limit) shouldn't be more than 30 percent.
• Become an authorized user. If it's hard getting your own credit card, convince a family member or friend to add you to their existing account.