How to Increase My Credit Report

On-time payments and low debt levels are the most important keys to increasing the quality of your credit report. A credit report with lots of late payments, charge-offs and collection items likely will lead to a poor credit score and high interest rates on loans and credit cards -- if credit is extended at all. People with excellent credit scores almost always pay their bills on time and are unlikely to default on loans, according to MyFICO.com.

Instructions

1

Order your credit report from AnnualCreditReport.com (see Resources). The website is managed by nationwide credit bureaus Equifax, TransUnion and Experian. You can order your credit reports free once a year through the site under the terms of the Fair Credit Reporting Act.

2

Review your credit report. Look for delinquent accounts that have been closed by the creditor and listed as charged-off or a collection item. Contact the original creditor or debt collector to pay these debts. Charge-offs occur when you stop paying as agreed, and the creditor closes the account and lists it internally as a write-off for tax purposes. It's then listed as charged-off on your credit report. A collection item is a charged-off item that has been assigned or sold to a debt collector.

3

Open new credit accounts and pay them on time, month after month. This will allow you to increase the number of positive credit accounts on your report. Apply for several forms of new credit, such as a department store credit card, gas station card or full-featured MasterCard or Visa. Make small charges on the cards, and pay the balances in full each month.

4

Pay down balances on existing revolving accounts. MSNMoney.com reports that, ideally, you should keep balances down to no more than 10 percent of your individual credit limits. If that isn't possible, keep the balances down to at least 30 percent. Keep the balances low as you continue to improve your credit.