Avoid Applying For Unnecessary Credit Always ensure that you avoid those new credit card offerings at the mall or department store, because all the newly added credit, no matter how small, are sure to do harm to your credit score. Make it a habit to only apply for credit that you truly need, and can afford paying off. Pros OF Credit Monitoring Services - A credit monitoring service makes a person life so much easier. Instead of personally filing for a credit report in the agency s office, you simply need to go online to quickly pull them up. A credit report is generally presented in an easy-to-understand format, which won t require you to hire the services of a professional financial analyst to sort through the clutter. Once you re in the site, choose your state from the pull-down menu, and start filling your information. Ask For Credit Reports From The 3 Major Credit Bureaus The next step would be to request for credit report from the 3 major credit bureaus, since you won t be charged with any fees. However, because you re only allowed one company per year, order them on a staggered basis throughout the year instead. Settling With Former Creditors For A Lower Amount Whenever a person settles his or her former debt with a former creditor at a much lesser amount, this actually does more damage to your credit score. Because you ve settled with your former creditor for an amount less than what you actually owe them, the creditor eventually reports the remaining balance which you weren t able to pay, to the credit reporting agencies, and this will get noted in your credit report as a deficiency balance . Controlling Your Debt: How To Boost Your Credit Score A credit score acts much like your high school report card. It features a three-digit grade , which reflects a person's credit worthiness to potential creditors, banks, insurance companies, mortgage companies and even employers. The higher your score, the greater will be your chances of availing credit. However, the big three are not immune to errors and major flaws, and according to credit experts, these three agencies incur error rates ranging from 20 to 30 percent, although some of the errors may be as simple as reporting the wrong month of a delinquent account. Nevertheless, any simple credit report errors may still have a damaging on the person s credit score, which can result in the individual getting rejected for a much-needed credit line.