Credit scores are a tricky thing. It can feel like everything takes away from that all important three-digit number, but nothing can seem to raise the number enough. It can be hard to raise your credit score if you don’t know how to go about it, and simply making timely payments is not enough. Whether you are looking to raise your credit score because it is too low to allow you to do the things that you want to do, or your score is just fine and you are looking to keep it that way, here are a few tips on how you can do so with ease.

Understand Your Credit Situation

The first step in raising your credit score is understanding your personal credit situation. Every person’s credit situation is different, and there is no way to have a true understanding of one’s credit situation, debt, credit inquiries, and other things that affect credit without knowing what is on their credit report. Everybody is entitled to one free credit report per year, available at freeannualcreditreport.com.

Pay Down Credit Card Balances

Paying down credit card balances is an important step in reducing debt and improving your credit score in the process.  Creditors like to see a discrepancy between available credit and credit balances, as it shows an individual is able to pay on the credit they take out. It is recommended that credit card balances be 30 percent or more below the credit limit in order to begin to raise a person’s credit score.

Keep Balances Low

Racking up huge credit card balances works against a person’s credit score. There is a myth out there that a person must maintain a balance at all times on their credit cards in order to look good to potential creditors. This is not the case, as it is the balances on the statements from the previous month that are reported to the credit bureaus. Being careful not to max out credit cards or worse, go over credit limits, is a great way to raise your credit score and keep it up there.

Use Older Credit Cards

Using older credit cards is another great way to boost a credit score. If you have a credit card that you have had for a while and  you are looking to raise your credit score, consider the fact that it may help to use that card every once in a while. If you are concerned about having another bill to worry about, consider using the card to pay a bill you would have to pay anyway, like your cell phone bill, electric bill, or car insurance. Then, pay off that balance and watch your credit score climb, slowly but surely.

Understanding how credit works and what it takes to raise your credit score when the need arises is an important step in maintaining healthy finances. A low credit score can cost a lot of money in the long run, making home loans, car loans, and even regular credit cards more difficult to obtain and expensive to maintain.