Keep your balances on your revolving credit, such as credit cards and equity lines, to a minimum. You should keep all of your balances below 50% of your credit limits and preferably your target range should be 20-40% of your credit limit. An example of this would be if you had a credit card with a 1,000 dollar limit you would want to keep your balance between $200 and $400 ideally. This will help to boost your credit score. Never max your credit cards out and definitely do not go over your limits.

Another way of improving your credit is to ask parents or family members that have credit cards which are in good standing and they carry no balance to add you on as an authorized user. That way you will gain the history of that credit card onto your own credit report. But be advised that if they make a late payment or max out the credit card it will affect your credit report as well.

Applying for too much credit can end up hurting your score. Apply for one card at a time and allow some time before you apply for another.

You will also want to make sure that all the information on your credit report is accurate and true. Most reports contain errors and some can be very damaging. You can do this yourself or contact a credit repair company to assist you.

The most important thing you can do for your credit score is to make all of your monthly payments on time. Even one late payment can drastically lower your score. If you are short on cash one month and you know you won't be able to pay all of your bills on time, try to put your debt payments on the top of your list of priorities.

Whenever you apply for any type of credit your credit report will be pulled. Having too many "pulls" on your credit can drastically lower your score, even if you do not open any new accounts.

You can also get a secured credit card. These are a great way to establish credit and are the easiest to get. You can do some research online to find banks that offer them.

I suggest you should first get a copy of your own credit report before applying for any loan. That way if there are any errors, you have time to dispute them. There are a few simple ways to build up your credit.
1. Establish a budget for yourself. Keep track of your spending.
2. Make sure to pay all of your bills on time.
3. Get a credit card, even if it’s a secured one.
(Hint: Every time you use your card, deduct the purchase amount from your checking account balance. Then, when the bill comes in, you already have the money to pay the bill in full).

Remember, there are not any fast ways to clean up your credit. Following these simple rules, will surely establish yourself as credit worthy over time.

If you are having a difficult time establishing credit, or re-establishing credit one option you may want to explore is applying for a Secured Line of Credit. In this type of loan you would be offering the bank some form of collateral to secure against the loan.