We\'d all love to have credit scores over eight hundred. We\'d also love to have beautiful houses, no credit credit cards, and no debt, but that\'s not how life works. Thus, here are 3 credit score tips to show you how to raise your credit score. These are based on the 3 credit score criteria that are used in each company\'s formulas used to determine creditworthiness.

Since approximately 35% of credit scores are based on payment history, timely payment of your bills is essential. Late payments are the quickest route to a low credit score. In turn, low credit scores lead to higher interest rates, and can even result in not qualifying for loans from lenders who decide you are not worth the risk based on your credit score. Always remember to pay your bills on time!

Second you shouldn\'t over-utilize. Some 30% of the credit score is based on how much of your total credit is in use. A rule of thumb is to stay below 50%. For example, if you have $50,000 available to borrow, keep your balances below $25,000. You\'ll also steer clear of red flags with each of your creditors, who often decide to lower credit limits and even raise APRs if utilization gets too high. Lowering your limit also can initiate a vicious cycle since it causes the utilization rate to go even higher.

Thirdly, you need to make sure not to ask for more credit than you need, diversify your debts, and build up your credit history. Thirty-five percent of your credit score is based on these three factors, or ten to fifteen percent for each factor. Credit scores reward longevity and seniority, like most financial systems. If you\'ve kept a credit card for fifteen years, you will receive a lower interest rate than a 20-year-old with no credit credit cards.

There is good debt and bad debt. If you have a lot of credit card debt, this is bad debt. Having a mortgage on a home and paying on time every month is good debt because you are building equity and creating a reliable credit history. Credit card debt is simply high spending habits. Also, applying for a lot of credit cards lowers your score by a few points every time you apply.

For a person who does not have huge financial requirements, the golden rule to raising your credit score and keeping it consistently high is to borrow only when it is a genuine requirement and to stick to repayment schedules. However, you need to have a credit card if you want to raise your credit score.