9 ways to raise your credit score in 2018

Because your credit score is an important piece of your personal financial puzzle, you should make every effort to improve it if it's less than stellar. Lenders use this three-digit number to decide whether to give you credit — and at which interest rate and terms. In addition, insurers, utility companies, cell phone companies, employers and even landlords use credit scores to determine your dependability.

The FICO score is the most commonly used credit score and ranges from 300 to 850. You can get your credit score for a fee from myFICO — the consumer division of FICO — or from the three credit reporting agencies, Equifax, Experian and TransUnion. And several credit card companies give cardholders free access to their FICO scores.

If you discover your score is low, you don't have to settle for a low number, forever. "There are many strategies to increase your credit scores — some with limited effectiveness and others with much more," said John Ulzheimer, a credit expert formerly with FICO and Equifax. Find out how to build credit and improve your FICO score in 2018.

Why Your Score Matters

If your score is low, you might have a hard time getting credit. Even if you do get credit, you likely will pay higher interest rates because you are considered a risk. It's possible to improve your score, but you need to know when you can and when you can't. "The first thing to do is to be realistic with your expectations," Ulzheimer said.

For example, if your score is low because you filed for bankruptcy this past year, there isn't much you can do except let time pass, because it will stay on your credit report for seven to 10 years.

But if your credit score drops for one of many other reasons — such as racking up debt over the holidays, opening several new credit accounts or making other similar credit mistakes — you can take concrete steps to raise your score up again.

This article originally appeared on GOBankingRates.com: 9 Ways to Raise Your Credit Score in 2018