Ways to improve credit score

Been denied a loan or a credit card lately? Getting a thumbs-up or-down depends on your score--a credit-ratings system developed by Fair Isaac Corp. (myFICO.com) that tells lenders how likely you are to repay loans and bills on time. Credit scores from FICO range from 300 to 850, with the average score around 750. "A score of 700 or above is considered healthy," says Ryan Sjoblad, public-relations exec at Fair Isaac. A score below 620 could mean you'll be denied a mortgage or you'll have to pay a higher interest rate. Here are some tips from myFICO.com to help raise your score:

1 Pay all bills on time. Late payments are recorded on your credit report and can lower your score. If you've missed payments, catch up. The better your bill-paying habits, the higher your score.

2 Keep balances low. High outstanding debt on credit cards and other revolving credit can decrease your score.

3 Don't apply for credit too often. Every time you apply for credit an inquiry is placed in your file. Too many new credit applications can lower your score.

4 Don't close unused credit cards. This strategy will not raise your score. But don't open new credit-card accounts that you don't need to increase your available credit. This approach could actually lower your score.

5 Don't have too few credit accounts. If you have no loans or credit accounts, you are also considered a credit risk. A few credit cards in good standing, with reasonable limits and balances, can help improve your score.

If denied credit, log on to ftc.gov/bcp/conline/pubs/credit/scoring.htm to learn about your rights under the Equal Credit Opportunity Act.