Step #3: Wisely manage your credit card debt

Think you need a zero balance on all your credit cards in order to get a good credit score? Not true.

Believe it or not, paying a card off over time, rather than immediately, will actually IMPROVE your credit. According to industry standards, it demonstrates you know how to effectively manage your credit.

So, make purchases using no more than 10% to 20% of your available credit and always, ALWAYS pay those bills on time. Remember: It's quicker to damage your credit than it is to fix it!

Next: Step #4: Pay down as much of your debt as possible