Only 35% percent of your credit score is based on your payment history so take advantage of all the points you can by having and using credit the right and responsible way. A simple yet crucial question to understand: Your credit score is a three digit number that is designed to predict the possibility that you won’t pay your bills. Whether you’re trying to get a loan for a home or tuition, lenders can charge you higher interest rates if they see you probably won’t be on time or pay your loan back at all. This number is between 350 and 850 and is based on your borrower’s bill-paying history, debt profile and statistical information that determines credit behavior.If no one is saying anything good or positive about you then it's impossible to have good credit. Credit is about trust and showing that you know how to manage your expenses and pay your bills.

Having the right mix of credit (a couple credit cards, a loan or two, and a mortgage) is very important and this step is often overlooked. You should have a couple credit cards that you use a small amount on (less than 19% of the limit) on a regular basis. This will show that you are responsible and that you know how to manage your finances and pay your bills. Building credit will raise your credit score. It will allow you to use and have credit when you need something instead of going to a pay day loan, title loan, personal finance company, or the family bank. It will make you feel great that lenders are trusting you again. It will provide you with security to know you always have an "emergency plan." It will help you get your home, car, job and life.

Intricate stuff, but now you just need to know what you can do to improve it. Once you’ve gotten the break you needed through credit repair, it’s time to maintain your higher score and build upon it.