Five proven strategies that will build and boost your credit scores

Your credit score is a very important number if you're thinking about buying a house or a car. The interest rate you'll pay for the money you borrow will be determined, in large part, by this three-digit number that's generated from the information in your credit report.

• Five proven strategies that will build and boost your credit scores

1. Don't File Bankruptcy or Foreclosure
Here's the most obvious advice: Don't file for bankruptcy or foreclosure. Bankruptcy or foreclosure is like an indelible link on your credit report which can for 10 year. It would also decrease your credit score. The older the bankruptcy or foreclosure account becomes, coupled with re-built credit history, the less of an impact they play on your credit score.

It is not totally truth that debt defaulters can legally delete their bankruptcy and foreclosure records. It's not easy process, even though it is partially possible. To quickly rebuild your credit history after a bankruptcy or foreclosure, use the Round Robin strategy above and get secured credit cards

 2. Don't Close Accounts
It is a bad idea to close your credit card account even if you pay off revolving debts.

The longer an account is open with no negative reports, the better it reflects in your overall credit score. This is due to the weighted-average in the credit score formula. Many credit experts suggest a balance of 30% of your credit limit. You can go as high as 70% and still maintain a healthy credit score.

3. Always Pay Your Bills on Time
Always make sure you paid your bills timely even if it is the minimum balance due. You credit diminish significantly even if you only 30 days late in your payment. It is therefore necessary you mail out your bills in a timely version. This would help you to keep balances low on credit cards. High outstanding debt can affect your score. Maxing out your credit cards could lower your average score by as much as 70 points.

4. Be a secondary holder of credit card account
This is a fast and great little credit score booster. This arrangement functions properly if the parties involved have an established trusting relationship. This is can achieve by persuading close relative, friends and family member with excellent credit history to add you to their credit card account. For example, when applying for a credit card, you may have seen the section to add a card holder. If your primary card holder adds you as a secondary card holder on his or her credit card account, the primary credit card payment history is now reported on your credit report too. If the primary card holder has perfect credit, you also have a perfect account

5. Stay away from applying for New Credit cards or credit facilities
Don't open a number of new credit cards that you don't need. New accounts will lower your average account age, which could actually lower your score by up to 10 points