Now that the banks are really tightening up their lending requirements, your credit score is more important than ever.  The national average score is around 680.  If you have a score above 720, banks will really like to do business with you. A score in the 500's will make it very hard to get financing and if you do get it you will certainly pay alot for that money over the life of the loan.

Your credit score is based 35% on your past payment history. 30% on the ratio of your balances to your credit limit.  15% on your past credit history.  10% on the number of requests for your credit score and 10% on the types of credit you carry.  Below are some ways to make your score better.

Always pay on time no matter what.

Always keep your balance under 33% of your total credit limit.

Keep your credit inquiries as low as possible.

Keep some accounts open even if you don't use them alot.  A long history is important.

Have different kinds of accounts in good standing such as a home loan, a credit card and a car loan.

Check your credit report for free once  a year to make sure it is accurate.

Here is the site where you are entitled to a free credit report once a year.  This site was set up by the three major credit reporting agencies.

www.AnnualCreditReport.com