Improving your credit score

Credit scores and histories are a lot like trust — they take a long time to build, but can be broken easily. Unless there are mistakes, you can't change the past actions that led to your current credit score. You can improve it for the future, though. The most effective way is to make payments by their due dates and gradually reduce the amount you owe.

It also helps to limit the number of credit cards you carry, and avoid opening new lines of credit unnecessarily. If you've obtained a lot of credit, or you repeatedly move balances from credit card to credit card, lenders worry that it's a sign of financial problems.

Credit counseling

Improving your credit history requires time, consistency and patience, and it requires your commitment to taking control of your finances. If you're feeling stressed by the amount of your debt or your monthly payment obligations, you may want to talk to a credit counselor who will help you come up with a financial plan to pay off any debt you have and organize your finances. The key is to understand credit, to value your good credit history and to always use your credit responsibly.

If you decide to use a credit counseling agency, do your homework and make sure that the credit counselor is reputable. To find a reputable credit counselor near you, you can check:

The National Foundation for Consumer Credit at www.nfcc.org or call 800-388-2227.

The Association of Independent Consumer Credit Counseling at www.aiccca.org or call 800-450-1794.