We have plenty of tools to help you learn more about the factors that can influence your credit scores. Here are five tips to improve your credit health.

If you are looking to build your credit, check out our guide to building credit.

Pay your bills on time
This can be one of the most important factors in your credit history. The likelihood that you’ll pay back your debts is generally a high-impact factor. Doing so on time, every time, helps prove that you’re reliable and can boost your overall credit health.

Late or missed payments can significantly harm your credit scores. If you have trouble keeping track of your bills, consider setting up automatic payments or payment reminders.

Pay down your credit card debt
Your credit utilization ratio compares the amount of debt you owe to the amount of credit you have at your disposal. Lenders want to make sure you are not borrowing more than you can afford to pay back, so keeping your credit utilization low (typically below 30%) on each credit line can help your scores.

Diversify your credit mix
Your credit mix refers to the different kinds of accounts included in your credit reports. While it probably won’t make or break your credit scores, lenders typically like to see a mix of revolving credit accounts (i.e. credit cards) and installment loans, such as mortgages, auto loans and student loans.

Try not to apply for too many new credit cards at the same time
Every time you apply for a credit card or loan it generates what’s known as a hard inquiry, which may have a negative effect on your credit scores.

Multiple hard inquiries in a short period of time may set off a red flag for lenders, as it suggests you may be scrambling for cash or getting ready to add on a significant amount of debt. This does not mean you should never apply for new credit, just consider spreading out your applications.

However, if you’re shopping for an auto loan or mortgage, some credit scoring models may allow for some level of shopping around by treating multiple inquiries within a short time period as a single inquiry. Learn more about rate shopping here.

Think carefully before closing old credit cards
The length of your credit history can be a significant factor impacting credit scores. Some credit scoring models may consider only the average age of all your accounts, while others may also factor in the age of your oldest open account.

You risk shortening the length of your credit history by opening too many new credit cards at the same time or by closing your oldest credit cards. Paying off a loan is something to celebrate, but keep in mind that your length of credit history can also be affected when a loan is fully paid off and closed.

• TransUnion®

  TransUnion LLC

  P.O. Box 2000

  Chester, PA 19016

• Equifax

  Equifax Security Freeze

  P.O. Box 105788

  Atlanta, GA 30348

• Experian

  Experian Security Freeze

  P.O. Box 9554

  Allen, TX 75013

Required Documentation

When requesting a security freeze by mail you will need to provide physical copies of the following identifying information:

1. One copy from the following list to validate identification:

2. One copy from the following list to validate address:

Follow a few simple precautions to keep your personal information safe.

• Consider adding a Credit Lock or Freeze on your credit reports.
• Do not carry extra credit cards, your Social Security card, birth certificate or passport with you unless needed.
• Never give out personal information over the phone. Scammers may call, posing as banks or government agencies.
• Shred your receipts, bank statements, returned checks, and sensitive information before throwing it away.
• Check with your employer, landlord, and others with access to your personal data to be sure that they are keeping your records safe.
• Check your credit report regularly to make sure it is accurate. If you find any inaccuracies, you can dispute these items with the credit reporting agencies.
• Protect your Social Security Number with extra care. Disclose it only when it is necessary. do not have your Social Security Number printed on your checks.
• Follow your billing cycles closely. A missing credit card bill could mean that someone has changed your billing address to his own.
• Keep a list of all your account numbers--with expiration dates and telephone numbers in a safe or protected area. If your wallet is stolen, you will be able to quickly alert your creditors.
• When creating passwords & PINs, use a random mix of letters and numbers. Do not use information that may be easily discovered by someone.

If you discover that your information has been exposed in a data breach, don’t panic! Here are some steps you can take to better protect your personal information going forward:

Change your passwords
Hackers and fraudsters may use the exposed password to try to gain access to other accounts, so it's important to change the exposed password anywhere it's used.

If you do not know what the password is or where else you use it, start by making sure you have different passwords for any accounts that contain sensitive info, such as a banking app or email account. Repeating the same password for more than one account can make it easier for a hacker to access your information. You should also avoid reusing any security questions or password hints going forward.

Learn more about how to create and protect a strong password.

Lock or freeze your credit reports
If someone has enough of your personal information, they may try to use it to apply for new credit cards or loans using your name. Placing a lock or freeze on your credit reports could prevent that from happening. If your credit is locked or frozen at all 3 of the main credit bureaus, lenders will not be able to access your credit reports for new applications for new financial accounts.

With that said, remember to unlock and/or unfreeze your credit report with all three main credit bureaus before you apply for a new financial product, such as a mortgage, loan or credit card. And remember if you still want to keep the freeze or lock on to place it again once after the application process.

There are several ways to do this. Here are the ones we consider most important:

• Pay your bills (on time)!  Late or missed payments can wreak havoc on your credit score. This is the simplest and most effective way to improve it.
• Do not apply for a lot of new credit cards all at once.  Every application generates what is called a “hard inquiry,” which can have a negative effect on your score. Having too many at once can be a red flag to lenders, because it appears that in need of cash or getting ready to add a lot of debt.
• Be careful when closing old credit cards.  The length of your credit history is a significant factor in calculating your credit score - some date it based on the average of all your accounts, while others look at the age of your oldest account. Closing old ones can shorten the length of credit history, affecting your credit score.
• Pay down your credit debt.  Your credit utilization ratio (the amount of debt you owe compared to the amount of credit you have) is an important figure to keep in mind. Lenders typically want to see a utilization ratio of below 30% on each credit line.
• Diversify your credit mix.  It is not a major factor, but lenders typically like to see a mix of evolving credit accounts (like credit cards) and installment loans (like auto loans, student loans or mortgages).

It is easy if you do the right things:

• Add a Credit Lock on your credit report.
• Never give out personal information over the phone.
• Do not carry extra credit cards, your birth certificate, Passport or Social Security card unless necessary.
• Shred anything with personal information - receipts, returned checks, bank statements, etc. - before throwing it away.
  When creating passwords or PINs, do not use information that could be easily guessed.
• Write down a list of all your account numbers (with expiration dates and telephone numbers) and keep it in a safe place, in case your wallet is stolen.
• Keep your Social Security number safe! Only disclose it when necessary.
• Watch your billing cycles.

Credit alerts indicate changes to your credit file with one or all the credit bureaus. These alerts are emailed or texted as soon as they appear. Some indicate normal changes to the data, and some could indicate fraud. Either way, they help you stay in the know.

A credit lock or freeze is a security measure that locks you credit to keep fraudsters and identity thieves from accessing your credit information and opening new accounts in your name. Keep in mind that to be fully protected, you will need to lock or freeze your report with all three major consumer credit bureaus.

A credit lock is different from a credit freeze. A credit lock provides more flexibility, as it is quicker to place and lift.

Both will:

• Prevent most creditors from gaining access to your credit report.

Both will not:

• Affect your ability to use credit monitoring services.
• Directly impact your credit scores; your scores can still change while your credit is locked.
• Stop you from receiving prescreened offers of credit.
• Prevent you from using existing credit accounts.

A credit report is the full picture a credit bureau has on an individual. This includes open and closed tradelines (credit cards/revolving accounts, mortgages, personal loans, and auto loans), personal information such as current and former address, employer, birth date, inquiries into your credit file, payment history and any derogatory information that may be present.

While different lenders have their own standards for rating credit scores, 700 and higher (on a scale of 300 to 850) is generally considered good.

Lenders typically use your 3-digit credit score to help them decide if they will approve you for a loan or credit card. In general, the higher your score, the better your chances of getting approved. Having a good credit score can also help you save on interest rates.

Of course, a specific score does not guarantee that you'll be approved for credit or get the lowest interest rates but knowing where you stand may help you determine which offers to apply for - or which areas to work on before you apply.

Score Simulator allows a consumer to simulate how certain life and financial activities would impact his/her credit score.

For example, a consumer could say he is applying for a credit card or mortgage soon. Score Simulator would advise him/her of what his/her credit score may potentially become after that event.

With Dark Web Monitoring your consumer receives alerts about uses of his personal data across the deep, dark, and surface web. This includes websites, databases, internet relay chat rooms, public and private security breaches, and other known places where data can be misused.

Whether it is a different score from a bank, an auto lender or another source, it’s not unusual to see many different credit scores. Here are three of the reasons why.

There are many different scoring models
Here you will see scores and reports from TransUnion and Equifax, both using the VantageScore 3.0 scoring model. VantageScore was created in collaboration with all three credit bureaus, and VantageScore 3.0 is relied on by lenders across a variety of industries.

Each credit scoring model has its own formula that may consider different factors of your credit report. And each scoring model weighs different credit factors slightly differently.

When you apply for a financial product the lender may be looking at different credit factors to make a lending decision. An auto lender for example might use a scoring model that weighs any existing auto loans more heavily than other credit factors. And a mortgage lender may be considering entirely different criteria altogether!

Lenders may not report to all three credit bureaus
Some lenders report to all three major credit bureaus, but others report to only one or two. Because of this difference in reporting, each of the three credit bureaus may have slightly different credit report information for you and you may see different scores as a result.

Scores can be from different dates
Credit bureaus can sometimes take a while to receive up-to-date information from your lenders and your scores may not change as quickly as you’d expect.

Since your scores might change at any time it’s a good idea to compare credit scores from the same date. If you do compare scores from the same credit scoring model, make sure they were last updated on the same date.

If there are so many scores, what should I focus on?
Though your scores may vary, they’re all based on information in your credit reports — so focusing on the information and key factors in your reports can help you make your credit stronger overall, no matter who’s checking.