1. The first step is to obtain a copy of your credit report. At the time of this writing, any individual can receive a free report from all three credit bureau at annualcreditreport.com.
    
2. Review your credit report and verify that all the information and history is accurate. If not you can dispute it by contacting the bureau, either by mail, or online.
   
3. To build and improve your credit score, you must always pay on time. It won't matter how much you pay as long as you meet the minimum balance due. This is important in building a credit history.
    
   
4. Pay attention to your debt-to-credit limit ratio. This ratio takes into account the total amount you owe against the maximum amount that the credit companies had set for you. It will raise a red flag if this ratio is high since its an indication that you are reaching your limit.
   
5. Keep a healthy credit history by keeping your credit card accounts that have the longest history. If you feel you need to close your accounts, start by closing the account that was opened most recently.
   
   
6. As a last step, it's good to have a good credit mix. This includes the right mix of installment loans, credit and retail cards.

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1. The first rule is to pay on time the minimum payment due (on or before due date)
   If you get in the mail new credit card offers that have: 0% APR for purchases for one year and 0% APR for balance transfers, take it. If not check online or go to any bank and ask about it. Transfer money from the credit cards that have smaller amounts (it will be ideal to result in 0 debts on one, two or even three credit cards). This will help you consolidate your credit cards and besides you will not have to worry about that amount for one whole year.
   
   
2. The second step is to analyze all remaining credit cards and start paying off the ones with higher interest rates (send more money towards the principal).
   Go to any bank that offers free checking. Deposit some money in the new opened checking account and use the debit card as your new “credit card”. Try to put less or close to nothing on your credit cards. 
   
   
3. Additional tips:
   -TIME will heal your credit score. If you follow this advice you will notice a change of about 10-15-20 points/month of your credit score. Give it about 6 to 12 months to see your FICO score jump over 700.
   
   -After you open the new credit card account STOP looking for any kind of loan (car, house, credit card, etc.) You don’t need any more credit inquires. All credit score inquires stay on your credit report for 2 years.
   
   -Never close the first 3-4 credit card accounts that you opened because that is your credit history and the older the better.
   
   -Don’t close more than one account every 4-5 months.
   
   -If you have 0 balance on your most recent opened credit card account, close it. You don’t need 50 credit cards

SOURCE: [ eHow.com ]

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