Credit

Borrow only what you can afford to repay.

Make all of your payments on time.

Avoid excessive requests or inquiries for credit

Have an emergency account to pay for unexpected expenses

Check your report annually to contest and remove any erroneous information

Keep a high credit line and a low balance. Credit utilization ratios measure this relationship, and reduce is better.

Do not open new store credit cards just to save on a purchase. New accounts can reduce your score, and too many payments can be difficult to manage. Saving 10% on a $300 lawn mower means little if it costs you even just fractionally more on a $300,000 home loan.

Do not open new accounts just to transfer balances for an introductory rate. In addition to possibly reducing your score, these offers often have traps. Instead, use them to leverage a reasonable rate from your existing card company.

Do not close old accounts. If you have a good record of payments on old accounts, these will benefit your score. Using them occasionally and conservatively will keep them active and contribute toward a good score.

Do not be afraid to use credit. Without the use of credit, you will have no score, and that can be just as bad as a low one.

Maintain a variety of accounts. A combination of revolving, installment and secured financing along with a good record of payments will yield a higher score.