Improving credit scores is not as difficult as what many believe. There are also no great mysteries about it. What one should remember is that credit scores involve mathematical process. As such, there are factors that can actually add to the score and factors that can similarly deduct from it. Taking this kind of approach can actually help one improve their score. So here are 3 tips on how you can improve your credit score.

Check your Credit Report

Your credit score is actually based on your credit report so this is your first stop. Errors are quite common and these may significantly affect your score, depending on the error. Since it is really nothing more than mathematical process that computes your creditworthiness, an error may be caused by computation or technical error or human error, as in the case of wrong information given by lenders, your employers or others. These can deduct a lot of points from your score. So get your report from the three bureaus and check out every little detail, from your name down to your purchases and information provided by other sources. If you find an error, report it immediately.

Pay on Time

Your credit score is the mathematical equivalent of your creditworthiness. As such, if you really want to improve your creditworthiness, make sure that you pay on time. Again, remember that it is a mathematical process and so mathematically, the delays in your payment result in deduction from your score. Paying your bills on time is of course not that easy, but you can do it by paying bills the moment you receive them, using automatic debit and by paying online, especially if your delays are due to time constraint. It is always good to pay your bills as soon as you can. In fact, many people find this habit to be quite helpful in managing their credit card payments.

Pay Off Your Debts

Again, since your score is computed to let lenders know how much credit they should give you, paying off your debts will result in having more available credit limit. If you have big balance on your card, definitely you will have less available balance. The same principle is applied on your credit score. If you have bigger debts, you will not have high score. Paying your debts is not impossible. You can sell unused items that you have, you can use coupons to save on regular purchases and you can have a more affordable lifestyle. You may find these to be not just financially rewarding but also personally rewarding.