How can you improve your credit score?

It's virtually impossible to change your score in the time between when most people decide to buy a home or refinance their mortgage and when they apply. So the short answer is, you really can't "on the spot." But there are strategies you can live with to make sure when you apply for a loan your score is as high as possible.

Make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Order a FREE copy of your credit report about once a year, and dispute any inaccuracies.

Don't close credit card accounts when you pay them off. If you have $5000 in credit available and one thousand in debt. Your debt ratio is 80% thats great. If you close accounts that you dont use leaving $2000 in available credit. Your debt ratio is 50% and your score goes down. Try to keep your cards at 20% to 30% of available credit.

Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.

The lower your score the more points you lose when your credit is pulled!

Paying off credit card debt is typically the best and fastest way to increase your score.

Unsolicited credit card solicitations in the mail don't count against your credit report, so don't worry.

The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as long as 10 years, can significantly lower your score. It's never a good idea to take on more credit than you can handle.

Late payments work against you. It's extremely important to pay bills on time, even if it's only the minimum monthly payment. If you miss a paymnet, make sure you payit befoer its 30 days late. That is when it's applied to your credit report for the next 7 years. Bringing your account up to date will not remove lates from your report.

Don't "max out" your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better. 

It's said that by carefully managing your credit, it's possible to add as much as 50 points per year to your score.