Here are some basic guidelines to follow in reference to credit:
1. Have 2-3 open tradelines of revolving credit (i.e. credit cards). In order to build positive credit history, you must use the cards. I suggest charging a tank of gas every month to a credit card. Carry a $5 balance into the next billing cycle. If you pay the card off every billing cycle, then you are not "building credit".
2. Do not allow the balance on any revolving account to exceed 30% of the available credit. If you have a $1,000 credit limit, do not let the account balance exceed $300 at any given point.
3. Pay your bills on time. Late payments will impact your score negatively.
4. Do not close old account with a $0 balance. The length of your credit history impacts your credit score.... more