Equifax and Trans Union are two large bureaus which collect your score. A credit score is a number between 300 and 900; the higher your number the better. A credit score of over 700 is considered very good. Generally, the better your credit rating the lower the interest rate at which you will be able to access loans.

1) Pay every account on time- This sound really simple but there is real beauty in simplicity. If you cannot make payments, make sure you are never 60 days past due. Some creditors will not report you if you are under 30 days past due but they will definitely report you for 60 days over-due. So play it safe and pay on time. Any late payment reported on your credit history can remain there for seven years.

2) Activity counts on each and every account- A lot of people have credit cards that they never use. I am advised that this actually hurts your credit score since your file isn't "active" on particular accounts. Activity generally means that you are using a particular account every 3 months or so

3) If you have to, cancel the newest credit instrument first: Remember that credit history and debt to credit ratios count. If you cancel a long standing account (assuming its in relative good shape) you are erasing credit history and increasing your total debt to credit ratio since the available amount of credit to you just decreased pushing your ratio up.

4) Divide the cost of large purchases among several accounts: If you buy a dishwasher and max out one credit card to do it, your debt to credit ratio increased to 100% on that account which decreases your credit score. Split the purchase of big ticket items between several credit cards and try to keep the debt to credit ratio on each card under 50% (i.e. only use 50% of the credit available under each card).

5) Do not apply for a lot of credit at once: This is a particularly important tip for students who have just graduated or recent immigrants without a domestic credit history. If you do need credit, try to consolidate it with one institution which only has to run your credit score once. For example, apply for a credit card and a line of credit at one bank or at the same institution that is administrating your student loan; it will only require one credit check and, if you subsequently apply for more credit at that same institution, at least they will know that all the new accounts are with them.

6) The Two-Two-Two Rule: For fairly good credit history most lenders would like to see at least Two active trade lines on your credit report, with a credit limit of at least Two thousand dollars ($2,000), and for a period of at least Two years.