Increasing your credit score is a lot easier than you may think.  The trick is to show that you have a history of various types of credit, and that you manage them well by paying them on time.  You can do this in 4 easy steps:

1.  Establish at least one revolving credit account.  A revolving credit account allows you to continue to borrow and pay off of the same account multiple times.  A credit card is a great example of a revolving account. 

 

2.  Establish at least one installment account.  An installment account is any account in which you borrow to pay off for a specific item.  Buying a house or car involves installment accounts.

 

3.  Consider the age of your average account if you are wanting to get a new account.  Typically, it is best to have your lines of credit on average at least 6 years old.  Having established accounts shows lenders that you are more stable, which also raises your credit score.

 

4.  Pay your bills on time.  I've come across several people who still can't seem to wrap their head around this idea.  If you have 10 bills for the month, pay 9 on time and the 10th bill is late, even if you pay the late fee, you still have messed up your credit score.  You must pay all of your bills on time, every time, or you will never see your credit score get better.  The best thing you can do is automate your checking account, to assure that all of your payments are paid automatically in a timely manner, and for you to simply make sure there is always enough money in the account to cover costs.

Your FICO score is becoming more important as time goes on.  Once used for just a credit rating system, employers are now looking into a potential employees score before considering hiring them.  Also, insurance companies are now looking at FICO scores do determine insurance rates for their customers.