1. Open a credit card

    What’s the best way to show creditors that they should lend you money? Prove to them that other lendors have also given you money. If you’ve never had a credit card before, you may need to co-sign with your parents, but using a credit card is the best way to build your credit.

  2. Pay your bills on time

    You know those student loans? Make sure you pay them on time. Paying your bills on time is one of the best ways to ensure a good credit score. Your payment history is the biggest contributor to your credit score and creditors depend on it for determining whether you will pay them  back.

  3. Avoid opening multiple credit cards

    Although having multiple lines of credit can boost your credit score, initially opening the credit card will usually create a hard inquiry on your credit report. These hard inquires are when a lendor accesses your credit report to determine whether they should extend a line of credit to you. However, these hard inquires also affect your credit score. New hard inquiries will temporarily lower your credit score, so if you need to maintain a high score in the near-term (buying a house, etc.), don’t open any new credit cards.

  4. Lower your debt

    Another factor that affects your credit score is your credit card utilization ratio. This ratio shows the amount of credit card debt you have to the sum of all your credit card limits. High ratios negatively affect your credit score, so maintaining a low ratio is critical. Two ways to achieve a lower ratio are 1. reducing your debt levels, or 2. opening more credit  cards to increase your limit. If you plan on doing the latter, heed number 3 above.