In credit and lending industry, most costumers after the best interest rates in the loans they are applying. However, it is not easy to have that kind of low interest for the loan because you need evaluation before approval. Creditors and lenders will look to your credit score and from there, they can know if you are a big risk or not. If you have a high credit score, 700 and above for example, you will get a chance for a loan with low interest rates and having poor credit score will get you loans with high interest rates.

Credit score is just a numerical evaluation of your credit worthiness. It is a three-digit number that provide a quick and simple way for banks, creditors, and lenders to evaluate whether or not you are capable of paying back the loans. Calculation of you credit score based the result on several factors like the following:

* Based on your performance in paying your bills.

* Your credit usage, for example, the available credit to your credit cards and how much balance that you use.

* Your credit history also is a factor and the longer the history, the better your score will be.

* The credits that you have also matters in your credit score calculation.

* Your recent credit action also determines your score. New credit account can hurt or improve your score.

Generally, you should do the best ways to improve your credit score to achieve a good credit score that is 680 to 720. You can also strive more to have an excellent credit score of 750 above that will put you in a position of best interest rates in loans.

Let us start to improve your credit score with these three easy steps. Take note that these steps are do-it-yourself:

1.The first thing you should look is how you pay your bills and debts. If you are a delinquent payer, then it is time to change it. Pay bills on time and make it a habit. Remember that your payment history of all your bills and debts, especially the latest 18 months of bill payment history, will account for approximately 35% of the total credit score. Therefore, be punctual in paying your bills and it can improve your score.

2.As a credit card holder, you should know which credit cards contain the highest balances relative to your existing credit. Pay that credit down first. As stated earlier, how much credits you utilize as a fraction of the credit existing to you affects you credit score. In short, it is better to use 30% of your limit and try not to overspend.

3.Last, but certainly not the least step, do not close any unused or old credit card accounts. Closing accounts have an impact in your credit score. Instead of closing them, try to use them in small purchases that you can pay on time. Using them can improve the image of your credit report that will definitely increase your score, as your payment history gets longer and more positive.

These are some of the proven and best ways to improve your credit score. These do-it-yourself ways are lot better than asking assistance from credit repair services that will charge you hundreds of dollars.