Pay all your bills on time, every time. This includes your utility bills, mortgage and car payments, and all your revolving lines of credit, such as credit cards.

• Check your credit report at least once a year. You can find out how to dispute erroneous information on your credit report here.
• Never charge more than 30% of the available balance on any of your credit cards. Banks like to see a good history of on-time payments and several credit cards that are not maxed out. If you have high balances on your credit cards, make it a priority to pay them down below 30%.
• Use your credit cards: Many people who make mistakes with their credit believe that the best way to fix things is to never use credit again. If you're afraid you won't be able to manage your credit cards properly, then the best policy is probably this: run only your utility bills on your credit cards each month and then pay the balance in full before the due date. This ensures that your utility bills are paid on time automatically, and as long as you keep in the habit of paying off your credit card balance each month, your score will continue to rise. Lock credit cards in a safe or drawer at home.
• Keep your accounts open as long as possible, even if you no longer charge the card. The best policy is to keep those unused accounts open, dust off your card every few months to make a small purchase, and then pay it off. The length of time each of your accounts has been active is an important factor in your credit score.
• Remember that this all takes time – following the steps above consistently over a long period of time will increase your credit score and allow you to qualify for better loans and lower interest rates. Repairing your credit score doesn't happen overnight, so if you do these things for a few months and don't see a big increase in your score, don't give up. These are all habits that you will want to maintain throughout your life, as they will help you keep your finances and lines of credit under control.