How to Add Points to Your Credit Report

A credit report tracks a consumer's history of paying debt obligations. Based on your history, credit bureaus assign a credit score, which financial institutions use to determine your credit worthiness. A credit report dictates your ability to secure employement, purchase a vehicle and purchase a home. It's a big deal. Making simple positive changes to your credit behavior can add points to your score over time.

Instructions

1

Focus on improving payment history. Late payments could be hurting your credit score. According to MSN Money, late payments account for 35 percent of your credit rating. Consider setting up automatic payments with your financial institution to avoid late payments.

2

Pay down debt. Large amounts of debt also drag down credit scores. Debt accounts for 30 percent of your score, according to MSN Money. Revolving debt, such as home equity lines of credit and credit cards, appears to weigh more heavily on your score. Focus on paying down revolving credit first, then focus on installment loans (such as an auto loan or personal loan).

3

Use a variety of credit. The type of credit used accounts for 10 percent of your credit score. Consumers who use a mix of installment loans and revolving credit earn higher credit scores. For example, don't avoid using credit cards altogether. Open a credit card and pay it off every month. This shows creditors you have will power with revolving credit.

4

Build a credit history. Avoid closing the first credit card you ever opened. Credit bureaus like to see consumers with a long credit history. It makes up 15 percent of your credit score. Use older credit accounts responsibly to add points to your credit score.