More lenders are looking at your VantageScore. This is an alternative way to judge your credit and is the main competition for the FICO scoring method. Your VantageScore works in line with each of the three main reporting agencies, so it is seamless. If you find that your VantageScore is less than your goal score, there are ways to improve it.

Obviously, paying your bills on time is the strongest influencer on your VantageScore, but there are other ways to improve it too. Don’t open lines of credit too frequently. Keep your outstanding balances low compared to the limit that you are afforded. Try to keep all your balances below 30 percent of the limit that each credit line will allow you to keep. Try not to have too much debt. If you want to improve your VantageScore, try paying down some of your loans when you can.

Try to have a mix of accounts in your credit history. Don’t let all accounts be credit cards. An auto loan paid on time over time can improve your score.

Also, check your credit report for errors. Check each of the three reporting agencies for mistakes. You are entitled to a free credit report each year from all three national credit reporting agencies from annualcreditreport.com. It’s a great way to check in to see where you stand. You can also do more frequent checks by getting a credit report directly from one agency at a time every four months. That way, you won’t have to wait to get a good idea of what’s going on with your credit report. Each credit reporting company has a system in place to fix any errors on your report. The three companies are Equifax, Experian, and TransUnion.

You should know that when you check your credit report for errors, it doesn’t impact your score the way it does if you have a lender check your credit.

When you look at your scores, you will also find information that explains what factors are affecting your scores the most. When you address these, you’ll see your scores increase too. It will take time, but it will happen.

Remember, pay especially close attention to your payment history and make sure you are paying your bills on time. Also, pay close attention to your credit utilization ratios and keep it under 30 percent as we explained above. Together these two factors can represent about 70 percent of your score, so they are crucially important. For example, if you find that your credit report shows that you paid your Kohls card late, it’s worth calling Kohls to see if they will change the report if you actually did pay it on time.

Remember, having a higher credit score offers you many benefits including lower interest rates on your mortgage when you finally find your dream home. So, if you’re thinking about buying a new home, it’s imperative that you check in with your credit history and check it for accuracy.

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