Q:

What are some steps for improving your credit rating?

A:

Quick Answer

Consumers can improve their credit scores by paying down credit card debt, keeping credit card balances low and paying bills on time, according to Bank of America. People with higher credit ratings are more likely to have banks extend credit to them in the future.

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Full Answer

Keeping credit card balances to 30 percent or less of the credit limit is optimum. Eliminating small balances across multiple cards can improve credit ratings by raising the amount of available credit, states Bankrate.

If a debt becomes delinquent or goes into collections, the lender can place a derogatory remark on the borrower's credit report. These remarks can greatly reduce credit scores, so borrowers should ensure that all bills are paid on time each month, reports Experian.

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