The first step is to correct any information that may be incorrect or inaccurate on your credit reports. Everyone is allowed to receive one copy of their report each year from each of the 3 credit bureaus. Simple go to www.annualcreditreport.com . Take a look and if any information is not correct, you can report it.
This next one is simple. Pay your bills on time and never go 30 days late on any bill. Bills that report to the credit bureaus are mortgages, auto loans, student loan, credit cards and some types of unsecured loans.
Try to have at least 2 or 3 accounts with some activity. Mortgages, car loans and student loans that are currently being paid, are considered "active". If you do not have any of these, try to use 2 or 3 credit cards on a regular basis. When it comes to credit cards....
Pay them off each month or try to keep all balances below 30% of the available limit.
If you have any accounts in collections, before you pay them off, ask the creditor for a letter to DELETE the account from the credit report. Some creditors will delete, while others will only update the negative amount to show that it has been paid. The difference is that once an account is deleted, it will be like it never existed. once it is deleted, your score will immediately go up. If it is simply updated, you score may actually go down initially, since you are just updated a negative account and it still exists.
The last one may help your credit as well as limiting your junk mail and helping protect identity theft. Opting out of pre-screened credit card offers may bump your score up a few points. It will also stop those annoying credit card offers from coming every few weeks. To opt out of receiving these pre-screened offers, visit www.optoutprescreen.com or call 1-888-567-8688.