Any lender to whom you apply will obtain your credit score and provide it to you. However, inquiries by lenders may have a negative effect on your score, whereas inquiries by you do not. It is a good idea to find out your score before you apply, so you can make an informed decision on whether you want to apply at that time.
PAY ON TIME: The core rule is to meet your obligations on time, every time. If you have had payment lapsed in the past but your habits have improved, time is on your side. The credit scoring rules weigh recent experience more heavily than older experience.
CORRECT MISTAKES IN YOUR CREDIT REPORT: Your score should not be reduced by reporting mistakes, which are all too common.
DETACH YOURSELF FROM THE WRONG VENDORS: Because finance companies lend to relatively poor risks, the credit score of any borrower owing money to a finance company is lower than it would be if the creditor was a bank. By the same topic, borrowers who have credit cards of department stores are penalized, relative to what their score would be if they had credit cards issued by banks.
REDUCE BALANCES ON REVOLVING CREDITS TO LESS THAN 50% OF THE MAXIMUMS: A high utilization ratio is read as a sign of weakness and potential trouble, reducing your score..
Note that the utilization ratios can be reduced by getting the maximums raised, as well as by paying down the balances. In many cases, credit card issuers are willing to raise the maximum at the borrower's request.
MINIMIZE THE NUMBER OF HARD INQUIRIES: Hard inquiries are requests to a credit agency for your credit score from a credit grantor, insurance company or other entity to which you have applied and to which you have entrusted your Social Security number. Soft inquiries made by you or by firms looking to sell you something for which you have not applied don't require your permission and don't impact your credit score.
The bottom line is that in applying for credit, find out your own score that you can deliver to the vendor you are shopping who need the score to set the price. The vendor you select will verify the score through his own inquiry, but it will be only a single inquiry.
PAY OFF COLLECTION ACCOUNTS: This may actually reduce your score in the short-run by converting the account from an older entry with low weight to a new one with a higher weight. However, you can't get a loan with a collection account on your record, so pay it off, and the sooner the better.
Do your homework before you apply for a loan. It will pay off in the end.