1. Pay your bills on time. Sounds simple right? This is the most important of them all. You must pay your bills on time. When a bill comes in pay it. If you don’t have the money to pay it immediately then set up an online bill payment with your bank. Set the date to when you believe you will have the money to make the payment. Most banks today have this feature so why not take advantage of it?

2. Do not exceed 35% of the limit on your credit cards. Why limit your balance to 35%? Because if your balance exceeds 35% of your limit it could affect your credit in a negative way. Remember the old adage “Banks lend money to people who don’t need it”? If your balance on your credit card is too high then you have fewer options—you are perceived as desperate.

3. Exercise your credit! You should use credit from time to time. If you don’t use it, you lose it.

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