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Here are a few ways you can maximize your credit score.

Background on Credit Scores

Although most consumers understand that credit scores are important, a recent study found that only 27% of consumers realize that credit scores measure risk. In other words, your credit score is a numerical representation of the level of risk a lender is taking in loaning money to you. Credit scores can range from 300-850. The higher your score, the lower the risk you represent to a lender. The goal of American Credit Repair is to make your credit report as clean and accurate as possible to maximize your score, thus lowering the risk lenders take in letting you borrow. Here are a few ways American Credit Repair recommends that you can boost your score.

• Keep minimal balances. If you do carry revolving balances on your cards, try to keep the balance of each card to a minimum. A big determinant of your credit score is your balance-to-limit ratio, so you don't want to appear maxed out to a lender.
• Pay on time. This may seem like a no-brainer, but recent late payments will wreak havoc on your credit score. Make sure you always make at least the minimum payment by the due date each month. American Credit Repair can occasionally help you remove late payments, if you already have them on your report.
• Don't close accounts. Even if you have unused accounts, you would do well not to close them. This will hurt your credit score by lowering your total credit capacity.
• Don't open a lot of credit at once. Many new accounts will lower the average age of your accounts, which can lower your score by as much as ten points.
• Have credit cards, but use them wisely. People without credit cards represent a bigger risk to lenders than those who have them and use them responsibly. In general, credit cards and installment loans will help your credit if you pay on time and use them responsibly.