Before you apply for a loan, credit card or other financing, you’ll need to check your credit score. The first step in securing funding is to have a score above 640, the higher the better, so that you will qualify and get the best possible rates. You don’t want to find out your score is subpar by being rejected for a loan. If you check your score and realize you need to bring it up, it may be time for some changes in your financial life. Improving your credit scores is as easy as following a few of these tips.

1. Check Your Credit Report for Accuracy

You would be amazed how many people have no idea their identity has been stolen until they check their report. Make sure every open account belongs to you, every address is one you recognize and that credit inquiries are yours. If you notice any discrepancies, report them. You can have a flag set up on your account to help stop future fraud. You will want to check your report and score regularly to be sure there are no further issues.

2. Get Your Debt Usage Ratio under 30%

Your credit utilization is a huge part of what makes up your credit score. By keeping the amount of debt below 30%, you’re showing creditors that you’re not completely living off your credit. You can accomplish this by paying off existing debt without adding new debt. It would be unwise to try to open new accounts, as this will place a credit inquiry on your account, further lowering your score.

3. Keep Old Accounts Active

Although having a lot of open credit is better for your score, accounts that remain unused for long periods of time actually look bad. So charge some gas on your open account and pay it off immediately to keep that account active.

4. Pay All Bills on Time

Late payments affect your score, and should be pretty avoidable. If you do think you’ll have to pay a utility, cell phone or credit card bill late, call and let the company know. They will want to keep you as a customer, so if they can help you out and still get paid, they’re likely to do so. Being transparent will help companies to help you

If all else fails, call the credit bureau and ask how you can improve your score. Then take their advice; you won’t regret it. A good credit score is gold in an age where everyone is borrowing. Simply qualifying for financing isn’t good enough; you also want to get the best interest rates. A high credit score tells lenders you are worth working with and will make them money.