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Rylie Horrall\u00a0<\/strong> | Lifestyle Editor<\/span><\/p>\n For those who aren\u2019t sure what a credit score really is, it\u2019s something that \u201creflects credit payment patterns over time,\u201d according to experian.com. It\u2019s an important financial consideration in someone\u2019s life, as it is the deciding factor in multiple scenarios \u2014 such as taking out loans or getting additional credit cards later in life. A credit score is found using an algorithm on a person\u2019s credit report, and it takes into account certain factors like account types, how long an account has been open and payment history. Because a good credit score is highly sought after and makes the user look responsible, it\u2019s important to know how to raise it.<\/span><\/p>\n One of the simplest things to do is to pay bills when they are due. That repayment history can be used to predict how someone will take care of future settlements. This applies to credit cards, student loans, phone bills, rent, utilities and so on. By missing payments or getting charged a late fee, a negative mark can appear on an individual\u2019s credit score for around seven years. However, according to experian.com<\/a>, a negative mark\u2019s prominence declines over time as newer payments are more relevant.<\/span><\/p>\n Specifically with credit cards, keeping a low balance is vital for a credit utilization ratio. A credit utilization ratio is calculated on the amount incurred on a credit card divided by the total credit limit across all credit cards owned, not just the one that is used. By keeping the ratio below 30%, it shows that the user isn\u2019t maxing out credit cards every single month. It\u2019s also an indicator of how well money and credit is being managed. Furthermore, if a credit card is no longer being used, don\u2019t close it \u2014 if it isn\u2019t costing any fees, it can increase the ratio since there is more total credit.<\/span><\/p>\n Checking credit reports is another key factor in maintaining good credit scores. If there\u2019s an inaccuracy on a report, it can have drastic negative impacts if it goes unchecked. It could decide if someone can take out a loan or not, or even affect their lending terms and interest rates. According to myfico.com<\/a>, contacting the credit bureau and organization that sends the credit bureau information can help fix the problem that\u2019s been noticed.<\/span><\/p>\n <\/p>\n