One easy tip to help improve your credit score is to have an open unsecured credit card. With this credit card you want to keep the balance around 10% of the credit limit.

In other words if your limit is $1,000 then try to keep the balance around $100. This shows the credit bureaus two things:

1. You do use your credit.

2. Your ratio of available credit to debt is high.

This means you have available credit that is not being used. The credit bureaus place a large emphasis on your available credit to debt when they calculate your credit score.

Your score will increase just by showing the credit bureaus that you have credit that is not being used. You will receive the most benefit if this is an unsecured revolving line of credit.

If you have trouble getting approved for new lines of credit, then consider being added as an authorized user. Find a friend or relative with good credit and ask them to add you as an authorized user to their credit card account.

This is commonly referred to as piggyback credit. There have been recent reports that the credit bureaus are no longer going to give any credit score benefits to an authorized user.

However because of the size of the credit bureaus and how difficult it is to change credit scoring between all three credit bureaus this change will take time to implement. It is estimated that authorized user's will still receive a benefit for the next 6-8 years.

Make sure to use good judgment when choosing a friend or relative. The account will show both positive and any negative information that can be reported. So if the account became delinquent it could hurt your score.

The account holder just needs to call in to the credit card issuer and add you as an authorized user. This can all be done over the phone.

A credit card with your name on it is then issued and mailed to your home. I suggest giving this credit card back to the account holder. This way they assume no risk.

All the details on the account will then be reported on your credit and the account holders' credit. This is an opportunity for your credit to reflect on time payments and available credit.

As I said, this will only be effective for a limited time. So take advantage while it still is effective and stop paying the high cost of low credit.