3 ways to improve your credit
1) Get an Installment loan. An Installment loan is a loan where you make a set payment over a set amount of time. For example $250 per month for 36 months. An Automobile loan with on time payments is a great way to show other lenders you are a good credit risk. Make your payments before the due date to ensure the payment gets posted as an “on time” payment.
2) Pay down your credit cards. Paying off your installment loans (mortgage, auto, student, etc.) can help your scores, but typically not as dramatically as paying down -- or paying off -- revolving accounts such as credit cards.
Lenders like to see a big gap between the amount of credit you're using and your available credit limits. Getting your balances below 30% of the credit limit on each card can really help.
While most debt gurus recommend paying off the highest-rate card first, a better strategy here is to pay down the cards that are closest to their limits.
3) Use your cards lightly. Racking up big balances can hurt your scores, regardless of whether you pay your bills in full each month.
What's typically reported to the credit bureaus, and thus calculated into your scores, are the balances reported on your last statements. (That doesn't mean paying off your balances each month isn't financially smart -- it is -- just that the credit scores don't care.)