Credit scores are one of the most important numbers in your financial life, yet they remain a mystery to many. Your credit score affects your ability to get approved for a mortgage, auto loan, credit card, apartment rental, and in some cases even insurance. The higher your score, the more likely you are to qualify for credit and at a lower interest rate. Here are some tips to improve your score and save money:

Check your credit report regularly to ensure there are no errors. Dispute them immediately if there are. Errors on your credit reports are more common than you think and they can negatively impact your score. Monitor your credit utilization ratio, which is how much of your available credit you’re using. Aim for 30% or less. Pay down high-balance credit cards to get below that threshold. Make on-time payments. Payment history is the largest factor in your credit score. Set up automatic payments if needed. Do not close old credit card accounts. The length of your credit history also determines 15% of your score. Unless there is a fee, keep accounts open.

Limit new applications. Each new application can lower your score a few points. Only apply for new credit when needed. If possible, allow 6-12 months between new applications. Check with credit unions. They often offer credit-builder loans, secured cards and other products designed specifically to help you establish or rebuild credit. Take advantage of them if needed. Consider a secured card. If your score is too low to qualify for a regular credit card, a secured card, where you deposit cash to establish your line of credit, can help you build your score over time with responsible use.

Once you have improved your score, check it again before major applications to ensure the best rates. Even small score improvements can save thousands over the life of a mortgage, auto loan or other installment debt. Building good financial habits and learning to manage credit responsibly provides lifelong benefits. Your score and your financial future are worth the effort. With time and consistent work, you can achieve a score to be proud of.