4. Pay all the accounts and close them

Most often it is seen that when you apply for a loan or do a major purchase, such as a mortgage, you might be told that you can improve your credit score if you close some of your credit cards. Don't ever fall to them. The truth is that if sometimes when you close an older card you will actually end up losing your credit card score.

There are two reason behind this, first is that the best scores goes to people who moderately use their card over a long period of time, so older the cards it is better. Even if you are thinking of closing then try to close the newest ones first so that you can retain the cards with the longest history of prompt payment. Secondly sometimes, credit scoring agencies put a lot of pressure on 'utilization ratio.' It is essentially your total debt as a percentage of all your available credit. If your available credit is lowered by closing cards, your utilization rate can hurt your credit scores.

5. My academic background can affect my credit scores

Your Academic background or education level is never part of a credit report, so it will not affect your credit scores. Only debt related information is included in credit reports. Therefore, information about loans, credit cards and payment history, as well as bankruptcy, tax liens and civil judgments will be reported.

Other information like income, investments or assets such as stocks or bonds will also not be included in a credit report. In addition to that there is no information about savings accounts, checking accounts, certificates of deposit or other non-debt banking relationships etc. Additionally, factors like race, gender, marital status, national origin or religion are also not included in credit report according to Equal Credit Opportunity Act.

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