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A good credit score opens many doors.  Obviously, you get a better deal when applying for loans or credit.  But did you know it can even impact car insurance costs?               Utility accounts can also be harder to get if your credit is poor.  Ditto phone and internet service.  Sometimes employers check credit.  Banks will certainly check your credit if applying for a loan, but they run a check even to open a checking or savings account.

In short, your credit score matters more than you thought.  Here are seven tips to improve your score:

1. Don’t open new lines of credit. Every time you open a new line of credit, your credit report gets accessed.  Too many inquiries about your credit can reduce your score.  Even if you never use the new credit line, your score could be impacted.
2. Don’t make major purchases. Borrowing more when you’re trying to improve your credit is counterproductive.
3. Don’t close or max out credit cards. Obviously, maxing out a credit card is not a good idea if you’re trying to improve your score.  But not closing an account is counterintuitive.  You can and should pay off the balance.  But don’t close the account.  The length of time your credit is in good standing is a key factor used to calculate credit scores.  If you close an account, all that credit history is lost from the report.
4. Don’t consolidate debt. This is a potential conundrum.  If higher interest rate loans can be consolidated into lower rate loans, obviously that’s a good idea.  Just know when you do this, your credit score could suffer a short-term decline.
5. Don’t miss any payments on existing debts or bills. Many utility companies report to the credit agencies.  It’s better to pay late than not at all.  It’s best to pay in full, on time.
6. Don’t switch jobs. Again, another conundrum.  Obviously, if a big opportunity comes your way, don’t turn it down because of the potential hit to your credit score.  But switching jobs can have a short-term impact on credit scores.
7. Avoid unusual activity in checking, savings and investment accounts, particularly large withdrawals. If your plans are to apply for a mortgage and there is a significant deposit to one of your accounts, the lender is likely to inquire where that money came from.  If the money was intended to help with a down payment on a home purchase, the lender may want a letter from the source indicating the funds don’t have to be paid back.

Finally, if you really want to score big, how about going to the Super Bowl for free?  I did.  You can find out how I did that here.