Did you know that only 10% of Americans know their credit score? Those are the findings of a survey commissioned by TrueCredit.com, a Web subsidiary of the credit bureau TransUnion.

"It is shocking how little Americans know about their credit," said John Danaher, president of TrueCredit.com. "Good credit is a cornerstone of your financial profile, enabling you to finance major purchases such as a home, education or car," he added. "Not knowing about your credit can expose you to higher interest rates, which translates into less money in your pocket at the end of the day."

When you apply for credit, your credit score helps lenders determine whether or not you are willing and able to repay the loan. With a higher score, you often qualify for better interest rates, higher credit limits, and more types of credit than you would with a lower score.

Your score reflects the way you use credit, and there are no tricks or quick fixes to getting a good credit score. However, you can raise your score over time by demonstrating that you consistently manage your credit responsibly. First Source wants to help educate you on ways to improve your credit score. Here is a quick lesson that will help get you started.

Pay your bills on time. If you have a history of paying your bills on time, you’ll have an easier time getting a loan. Even if you’ve had serious delinquencies in the past, a recent history (24 months) of on-time payments can help.

Keep credit card balances low. High outstanding debt can pull your score down. You can use credit cards but remember to manage them responsibly. In general, having credit cards and installment loans which you pay on time will raise your score. But, be careful not to open up credit card accounts that you don’t need as this could actually work against you!

Don’t open multiple accounts too quickly, especially if you have a short credit history. This can look risky because you are taking on a lot of possible debt. New accounts will lower the average age of your existing accounts, something that also can affect your credit score.

Don’t close an account thinking it will be removed from your credit report. A closed account will still show up on your report. In fact, closing accounts can sometimes hurt your score unless you also pay down your debt at the same time.

Check your credit report for accuracy. Inaccurate information on your credit report can be cleared up easily. Always contact the original creditor and the credit bureaus whenever you clear up an error. First Source can guide you to recognize such errors through our Be Credit Smart Service.

While these ideas won’t create a dramatic improvement in your credit score overnight, they can over time. Remember that it takes time to develop a strong credit profile, but once you’ve done it, you’ll find it easier to manage your finances in the future.

Stop by one of First Source’s convenient locations if you’re having financial difficulties and let one of our Financial Service Representatives assist you.