The most effective way to better your credit report is to manage credit responsibly over time. Clearly the best way to do that is to pay your bills on time every month. It?s very important to live below your means so that you have enough money every month to pay them. None of the tips I?m going to tell you about will work long-term if you can?t get your spending habits under control.
Here are some fast tips to help you better your credit reports now.
Learn How the Credit System Works.
If you don?t know how this game works, you?re not going to win it. It?s just something that every single consumer is going to have to eventually learn in their life time. The sooner you learn, the better off your life will be. Yes, your credit score is that important. Don?t listen to what a friend of a friend told you about credit that he heard from his parents. There?s a lot of misinformation getting spread around. Get your information from the top financial sites and books on the subject.
Keep Your Credit Card Balances Low.
High balances on credit cards and other revolving accounts hurt your report. Try to keep your balances under 30% of your available credit limit. Never let it get higher than 50%. This is extremely important. Never give the appearance to the banks that you are ?strapped?. Once you let them see that you?re using almost all of the credit made available to you, it appears to them that you are in a state of financial emergency. It?s calculated in the FICO scoring algorithm and everything. At that point, only very high interest rate lenders will give you loans.
Apply New Credit Accounts Only as Needed.
Applying for new accounts lowers your credit scores; especially if you apply for too many in a short time period. If you know you have negative credit scores, don?t apply for anything. It?s amazing how some people know they have negative credit scores, but still keep trying. ?It?s worth a try.? No, it?s not. Every time you ?try? you hurt your credit report even more ? STOP!
Delete Negative Accounts.
This step is my favorite. This is what credit repair is all about. Learn how to get negative accounts removed from your credit report or hire a credit repair agency to do it for you. Deleting such accounts is probably the single fastest way to improve your credit report.

Article Source: http://www.itempad.com