For those not in the know, your credit score is based on a number system between 300 and 850. A formula determines what your number should be. Experts and creditors agree that your credit score is said to be a very accurate prediction of how likely you are to pay off your bills.

Your credit score is important. If you already have a credit card, the creditor will probably look at your credit score to decide whether to decrease your credit limit, or give you a higher interest rate. Those lucky people with the highest scores obtain the lowest rates.

But don’t freak out yet if you have a low credit score; there are ways to improve your situation. Most importantly, try to pay your bills on time. Paying late or even worse, allowing a negative account to go to collection can have a negative impact on your credit score. It logically follows that the longer you pay your bills on time the better your credit score will be.

Attempt to pay off debt rather than move it around. It’s just the most effective way to improve your credit score. Don’t close your unused credit cards. Closing is going to close the gap between the amount of credit you are using, and the whole amount available. If you have a lot of credit, and only use a little, its good.

And for the love of God, don’t open any new accounts. New accounts aren’t even helpful in credit scoring because they will decrease your average account age. Which leads me to my final point. Longevity. Try to maintain your oldest accounts. Longevity pulls a lot of weight on credit reports, so the oldest account you have is the most available.

Mallory McGuinness works for a debt collection company. She also composes stories on consumer spending, business, financeand debt collection.