Well-managed credit will improve your credit score over time. Specifically...

Credit Reports and Scores

Review your “FICO” scores and credit reports once a year or before you apply for a loan – Check for any errors and negative information. (You are entitled to a free credit report from the three major credit bureaus but the reports do not include your credit scores—they will sell you a FICO score). If you find any error(s), contact the credit bureaus online or in writing. They have 30 days to investigate and either correct the error(s) or respond that the information is correct.

Credit Applications and Canceling Credit

When you apply for credit your file is so noted and this can reduce your score. So, limit credit applications and thus limit the number of companies you owe money. However, this does not mean you should close accounts to boost your credit score. By paying down or paying off an account and keeping the account open, the total credit available—versus showing you are using only a small percentage of that available credit—can improve your credit score. Closing the account altogether can reduce the ratio between what you owe and what is available to you.

Credit Limits

Be sure that your creditors are reporting your credit limits so there’s no assumption by the FICO system that you’ve borrowed to the limits when you know that’s not the case.

Automatic Bill Paying

Consider this to assure that you’re never late on a bill. Late paying can considerably reduce your credit score.