How can you improve your credit score?

It's virtually impossible to change your score in the time between when most people decide to buy a home or refinance their mortgage and when they apply. So the short answer is, you really can't "on the spot." But there are strategies you can live with to make sure when you apply for a loan your score is as high as possible.

Make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies.

1.  35% How You Pay Your Bills

Tip:    Don't let your bills go over 30 days late
Tip:    Let delinquencies age. Your scores improve over time. The model 
         looks at the last 11 months, 12-24 months and then over 24 months.

2.  30% Level of Debt

Tip:    Have 3-5 credit cards available (not closed accounts).
Tip:    Keep balances under 50%. You will get a higher score if your balance
         is under 30% or even 8% of your high credit limit.
Tip:    Don't max out your credit cards.

3.  15% Length of Credit

Tip:    The model loves accounts over 10 years.

4.  10% Types of Credit

Tip:    You need both installment and revolving credit.
Tip:    The scoring model doesn't like finance charges.

5.  10% New Credit

Tip:    Biggest myth is inquiries.

Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus and lenders realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.

Unsolicited credit card solicitations in the mail don't count against your credit report, so don't worry.