Use a credit card for making small purchases, and don t use it to borrow money every time you go shopping. Correct All Errors In Your Credit Report Once you get hold of your credit report, check it thoroughly, just like using a fine-tooth comb for removing any tangles in your hair. Be on the lookout for any inconsistencies or errors, and carefully read all three of your credit reports. 300 499 Bad Credit 500 580 Poor Credit 580 619 Low Credit 620 679 Average Credit 680 699 Good Credit 700 850 Excellent Credit Regularly Monitor Your Credit Score According to credit experts, a good to excellent credit score is often weighed as a future sign of your credit value, and if your credit score is Good, then your future loan s interest rates will certainly be lower than usual. Pay All Your Bills On Time According to credit experts, an estimated 35% of your credit score is based on payment history. By consistently paying your bills on time, whether they are credit cards or utility bills, insurance premiums, parking tickets and even library fines, your credit score will be further enhanced. While you may be currently quickly paying-off your credit card debts, and settling any other outstanding obligations, your previous history of late or missed payments will still reflect on your score. As the credit experts often say, it takes time to repair your credit score. Myth No. 3 Closing Old Accounts Helps Boost Your Credit Report This myth s nothing but a common delusion. Check out any errors or inconsistencies on your credit report, because any negative item is only allowed to be reported for 7 years. Should you spot any inconsistency or discrepancy in your report, this should be removed or erased immediately. Keep Off Any Overdraft Fees To steer clear of overdraft fees, always make it a habit to balance your checkbook against your monthly statements, and always keep records of the items you purchase, or the services you ve availed of. 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.