NEW HAVEN, Conn. (WTNH) – Your credit score is an important part of your financial health. Credit scores are essentially a picture or a snapshot of a consumer’s risk profile.

When lenders are making a decision of whether or not to extend credit to you or more importantly how much to extend they’re looking at your history at your payments you’ve made over time on your credit obligations.

Nidhi Verma, Vice president of international research and consulting for Transunion Shares some tips on how to best improve your credit profile

First, learn how to read a credit report and become educated and aware of what your credit report entails. The second tip may sound obvious but it’s very important. Making your payments on time may sound elementary but more importantly, you can manage your payments to be on time and not miss your payment.

That will play a major role in improving your credit score over time. It is also important to show that you have the financial capacity to make your payments and make them on time.
If you have credit cards in your wallet and you do end up carrying a higher balance be mindful of not utilizing those credit lines more than 30%.

And remember, you are entitled to a free credit report every 12 months from each of the three major consumer reporting companies like TransUnion, Equifax and Experian.