There are simple ways that you can improve your credit score. The first thing to do is to get your FREE credit report and your credit scores from the 3 leading credit bureaus.

You are entitled to receive one free credit report from the top 3 credit bureaus once a year by going to this site annualcreditreport.com . You can also get your credit score for as little as $7 at the bureaus' website; equifax.com, experian.com, transunion.com

Your aim is to maintain your credit score above 650 (720 and above is best)

7 TIPS FOR A PERFECT CREDIT SCORE

One-Reduce all credit balances to less than 35% of the credit limit

Two-Dispute negative/detrimental inaccuracies that appear in your credit report

Three- Have 3 active credit cards (maximum of 6 credit cards) For example - One gas card for fueling your car, One Visa for grocery shopping and One Store Card for clothes and gifts

Four - Have 1 or 2 loans with fixed payment period; For example One car loan and One student loan

Five - Minimize credit applications to 2 per year

Six - Maintain 7 years of good payment history

Seven - Do not close credit cards with payment history of more than 3 years and no annual charges. You may stop charging on them but do not call to close the accounts. The good payment history is helpful to boost your score

HOW TO GET A GOOD DEAL ON A LOAN APPLICATION

One - Have a credit score above 650

Two - Ensure the percentage of your total debt payments to income is less than 30%

Three - Ensure the percentage of your loan applied for to value of item to be purchased is less than 80%

3 WAYS TO PAY OFF YOUR CREDIT CARDS

1-Acceleration method. Pay off the loan with the highest interest rate first. Then pay off the loan with the second highest interest next, and so on. Each time you finish paying off a loan, add the money freed up to the minimum loan payment of the next loan. This method reduces your interest payments to a minimum.

2-Psychological method. Pay off the loan with the lowest debt first, then the second lowest debt second and so on. This method gives you confidence and a sense of achievement as you gradually work towards being debt free.

3-Credit improvement method. Pay the lowest debt first till 35% of credit limit. Then pay second lowest debt till 35% of credit limit, and so on. After all debts are at 35% of their limits, use either the psychological or acceleration method to clear off the debts.