The mix of credit contributes 10 percent to the credit score. Customers with the best scores have a mix of both revolving credit, such as credit cards, and installment credit, such as mortgages and car loans. Statistically, consumers with a richer variety of experiences are better credit risks. As far as banks and credit card companies are concerned, they know how to handle money.

The last important factor taken into consideration is new credit applications (10 percent). If you've applied for several lines of credit in the past few months this will negatively impact your credit score.

The antidotes to this are simple. Pay your bills in a timely manner, particularly in the months leading up to an application. Close unused retail store cards, credit cards and old bank accounts with overdraft facilities. Maintain long-standing and healthy arrangements with banks and other lenders. Don't apply for a stack of credit cards, loans and so on, unless you're absolutely sure it's the right product for you. It goes without saying that you shouldn't apply for a credit line unless you use it.

There's a sixth factor that can contribute enormously to a negative credit rating. In 2001 it became possible for customers to get their own credit score in exchange for a small fee. In the past, prospective lenders were able to keep this score hidden, and many unscrupulous institutions used this knowledge to charge a higher APR on credit. By being aware of your credit score lenders can't lie and say your score was low and charge higher APR on your credit card.

More importantly, it's vital that you get rid of black marks on your credit rating. Errors unfortunately happen all the time, and erroneous reports of missed payments, referrals to debt collectors and even bankruptcies can scupper your chances of getting a low rate of interest and even a credit card altogether. Query everything and haggle with credit reference agencies so that only the information that is listed on your credit history that should be there, is there.

You can find out your credit history by applying to one of several companies. Many offer an online service and can furnish you with the information both quickly and cheaply. Equifax, Truecredit and Consumerinfo are some of the best such providers.

Patience is the key to getting a great credit score - and the best credit deals. You're never going to make the jump from having a credit score of 500 to one of 700 overnight, but by implementing easy to follow and practical strategies, you can quite easily leverage your credit score to a rating that is respected by all concerned.
About the Author

Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any other type of credit issue please visit us at http://www.creditcardunlimited.com