You won't be able to calculate the effects that a low credit score can cause but you will be able to recognize the damage that it can do your life and to your finances. The good thing about your credit score is that even a small increase in your score can save you thousands of dollars of interest in your home mortgage, car loan, or the rates on your credit cards.

Your credit score is a dynamic number and it will change every time your credit report changes. Even though you may think that this change is insignificant it can have a big impact on your credit rating. If you want to improve your credit score here are some things that you should focus on as per the financial experts:

1. Carefully review your credit report and then take the time to correct any errors. This includes getting rid of information that is bad and inaccurate. This step alone can make a big impact on your credit score.
   
2. Don’t take old financial advice that tells you to close any credit card accounts you have that are unused or old. Doing this will reduce the amount of potential available credit that you have but will also change your debt ratio by raising it. You don’t want to raise your debt ratio since this will lower your credit score.
3. Creditors will look at the average amount of time that you’ve had your accounts so this is another reason to keep your old accounts around.
4. Start paying off your credit cards. Try to reduce the balance on your cards by at least 75% or lower of your total amount of credit. If you can’t do 75% work towards at least 25%.
5. Pay your bills when they are due! This is perhaps the most important thing that you can do to raise your credit score.
6. Try to limit the number of inquires that are made on your credit report. This means applying for as few new credit cards as possible. The less inquiries, the higher your credit score.
7. Don’t apply for new credit cards just so that you can increase the amount of credit that you have available to you.