That three-digit number determines how likely you are to pay back your lender, and as for your creditor, it indicates the risk involved when lending you money. A good credit score means having to pay less interest rate, lower finance charges, and more benefits. A bad credit score will keep you from obtaining credit or place you in a high-risk category, both result in you paying higher interest fees. Here are some great tips on fixing your credit score.

• Analyze your credit score report
  Begin with thoroughly analyzing what’s affecting your credit score. It could be anything from your payment history, total credit available, how long you’ve been using a credit card for, or if you’ve opened any new credit accounts. It’s ideal to know the problem before you take any steps to correct it.
• Payment reminders could help
  To pay your bills on time, set up payment reminders, and gradually within a few months, making payments in time could improve your credit score. You could even make a payment every two weeks instead of once a month to fasten progress on your credit score.
• Fix your debts
  Money owed has a very significant impact on your credit score. After payment history, debt comes second in the credit card problem pyramid. While paying down the debt, you might want to consider paying off the highest-interest card first.
• Become an authorized user
  Being added as an authorized user on someone else’s card with a great credit history can up your credit score.
• Avoid opening a new credit account
  Opening a new credit account while trying to fix your credit score could have a bad outcome. It could demand an inquiry on your existing credit accounts, and that could impact your score. Always consider opening a new credit account sparingly.
• Keep the creditors in the loop
  When you can’t pay up your dues, immediately addressing the problem to the creditors could reduce the damage on your score and outstanding.
• Old, unused credit accounts could be of help
  Closing your old credit accounts could do more harm than good. If you’re looking to close any non-functional accounts, act on the new ones. The old ones add to your term of credit history.
• Boost your credit limit
  If you’re confident about making timely payments, increasing your credit limit could instantly lift your credit score and your credit utilization.
• Quick loan to the rescue
  These involve taking small loans that range from $250 to $1,000, and immediately repaying the amount could instantly increase your credit score.
• Diversify your credit account
  When your credit account includes mortgage, student, and auto loans, they account for 10% of your credit score. Adding a new type can benefit your score.