Credit scores are measured by three credit agencies: TRANS UNION, EQUIFAX, and EXPERIAN.
Credit agencies use consumer’s pay history of open accounts, one of them is known as revolving credit, to determine your credit rating. In most cases, 40% of your credit score is determined by revolving credit accounts.
The key to improving your credit score is to keep credit card balances under 30% of available credit.
Always try to address any and all collections, judgement liens, and any potential credit damaging matters before they report on your credit.
If you have zero or very little credit established, start by opening up a secured credit card at your bank or credit union. Every secured credit card is created by opening up a savings account. Your credit limit is then determined by the amount you deposit and hold as a steady balance in that savings account.