Number 1: Pay your bills on time. Payment history accounts for 35% of your score.

Number 2: Increase the length of your credit history. Accounts for 15% of your score. Don't close old accounts. Length of time open matters.

Number 3: Keep credit card balances low. This accounts for up to 30% of your score. Try to keep the amount you borrow below 25% of your available credit.

Number 4: Minimize credit requests. 10% of your score. Too many accounts impact your score.

Number 5: Maintain different types of installment and revolving debt. 10% of your score. How you handle revolving debt (like credit cards) carries more weight than how you deal with installment debt (car loans and mortgages).

Remember to check your credit score once a year. You can receive a free report at www.annualcreditreport.com.

A high credit score can not only help you secure a lower interest rate when you need to borrow; it can even reduce your insurance premiums, and some employers consider it when deciding whether or not to hire you for a job.