Three great ways to raise your credit score

Achieving a perfect credit score may seem like a long shot. The median credit score in the United States is 713. Yet, reaching a perfect credit score of 850 — or one that’s above 800 — isn’t impossible. Those who do achieve high credit scores often have three key things in common:

1. They pay their bills on time. On-time payments can provide a big boost to a person’s credit score. Likewise, late payments can dramatically lower it.
2. They check their credit report regularly. Credit bureaus make mistakes. Checking your credit report at least once each year is key to making sure the right information is being reported to the credit bureaus. Credit scores reflect the quality of your credit record; mistakes can lower your credit score.
3. They use credit sparingly. Aim to use only a small percentage of your available credit. Maxed out credit cards or balances approaching a credit limit tend to lower your credit score.Consumers with high credit scores often enjoy lower rates for mortgages and other types of consumer loans and lower premiums on some types of insurance policies. A high credit score also can help you during a job search, since nearly half of U.S. employers conduct credit background checks on applicants.