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You may have noticed that the U.S. is struggling economically, and there is no indication that things will change any time soon. Even credit card companies are struggling mightily with bad debt, and they are willing to take on less riskier customers. That’s where your credit score comes to play. Having an outstanding credit score is the difference between owning that home that you have been dreaming about all your life and having the foul taste of rejection from mortgage companies in your mouth. Your credit score is more than just a number in the United States. Not only companies use your credit score to determine your eligibility for a loan or a rent contract, a bad credit score can keep you from getting the job that you have always wanted.

Your goal should be to be in the 700-730 range with your credit score. But you should never put a ceiling on how far you want your score to be. The higher your credit score, the better rates you get on your loans and credit cards. Besides, you don’t have to do anything drastic but to pay extra attention to your credit affairs. That would also help you become more fiscally responsible and live a better more comfortable life. So when it comes to your credit score, you should never stop improving no matter how high your credit score is.

There are several ways that you can improve your credit score. But it is necessary to be patient when it comes to increasing your credit score. Improving your score could take as low as a few days or it could take months depending on the current state of your credit.

So here are ways that you can improve your credit score and be on your way to a better life:

1. Check Credit Reports: The first method for boosting your credit score is to check credit reports for errors. You would be surprised how often people find errors on their credit scores that could be fixed without much trouble. But if you don’t check your credit report, you won’t know it in time.  So, if you ever suspect that your low credit score is caused by an error, you should contact the credit reporting agencies and challenge them about the report. Most minor credit issues can be fixed within 30 days if you are persistent enough with credit agencies.

2. Pay Your Balances On Time: The whole concept of credit worthiness revolves about your tendency to pay back your debt on time. Think about it. If you keep paying your debt balances on time, it shows credit card and loan companies that you are trustworthy enough for them to issue you better loans. I suggest you pay your monthly balances in full or close to it to avoid interest fees. But at minimum you should pay more than your minimum monthly payments.

3. Manage Your Debt: you should stay on the conservative side when it comes to opening new debt accounts. The more credit cards you have, the riskier you are. I know people who have achieved excellent credit with 10 or more credit cards, but that will only happen in a long run. Keep in mind that adding new accounts brings extra work and requires more diligence on your part. I recommend you don’t apply for more than 3 credit cards while you are still in credit building process.

4. Never take on more than you can chew: we all want to live the best life possible. We all want to buy the latest gadgets, drive fancy cars, and get those big HDTVs for the football season. But if you can’t afford to pay for these things, you should just not get them. You work hard to build your credit, and if you miss a payment or two, that could significantly set you back.  Don’t leave anything to chance when it comes to paying your loan balances.

5. Maintain Low Balances On Your Credit Cards: you have probably seen those cards that give you thousands of dollars in credit limit. It’s great to have the option to buy a $5,000 item with you card, but keep in mind that the more you put on your cards, the riskier you are. Divide your expenses among your 3 credit cards and keep a low monthly balance. That can certainly boost your score.

6. Pay Attention to Credit Card Fees and Limits: managing your credit cards is a serious business. You should know what the APRs are for balance transfer and purchases. You should also be aware of other fees and limits with you card. Never ever go over your credit limit as it will bring you additional fees, and it could potentially hurt your credit score. When it comes to building your credit score, paying attention to details is the only way to go.

There is no “one-night” shortcut to having a better credit score. Unlike what most consumers believe, credit card companies follow a logical path to determine your credit worthiness. Pay your balances on time, and be a less riskier consumer, and you are going to enjoy a higher credit rating. It’s as simple as that.

If I asked you about your phone number, could you remember it? How about if I asked you about your credit score? It is surprising how many people do not check their credit score to find out if they can take advantage of it to receive lower rates and better loans. Credit check is usually done to verify whether you are eligible for a loan or on any other forms of credit based on your past credit performances. Your credit score will tell a lot about you as a consumer: whether you are trustworthy or a high risk to potential lenders. If you have paid your bills on time all the time and do not have many credit cards accounts open, you can expect to get a passing score from credit bureaus. But if you have been slacking off and missed a few payments, you will see them come back to haunt you.

If you have applied for a car loan or a home mortgage, you have probably seen them ask for your credit information to check your credit score for you. Even if you are looking for a house to rent, you can expect your real estate agent to check your credit score to figure out if you are a trust worthy person to get the house. But that’s not all. Even employers check credit scores these days to figure out if you as a job candidate are worth taking the risk on.

Knowing your credit score can be the difference between you getting that house of your dreams or getting the bad feeling of rejection in your mouth. But what many consumers don’t know is that you can obtain your credit report containing credit-related information from any of the three major credit-reporting agencies. Besides, the Fair Credit Reporting Act entitles you to free credit scores from all three bureaus. Under FCRA, every individual is entitled to receive a free credit score from any of the three major credit report companies (Experian, Equifax, and Trans Union) once a year. It is recommended that you get a free credit score every four months to stay on the top of your credit all the time (try getting a free score analysis on April from Experian, then try the same from Equifax on August, and Trans Union on December).

You can obtain your free credit score, through a centralized credit report website on any of the three major credit bureaus in the United States. You can also use services such as myFico to go beyond the three free scores that you are entitled to in a year. After receiving your credit report, you need to look through the report carefully to see if you can find any discrepancies. If you are lucky, there are no major surprises on your credit report, but you can always dispute the derogatory items on your credit report if you feel you are a victim of theft identity. The key is to catch it quickly and avoid getting in a deeper trouble.

With these tough times, you simply can’t afford to not know your credit score. But with all the tools that these bureaus give your for less than the cost of your daily coffee, you simply have no excuse for not knowing what going on with in your credit report.