An effective method to improve your credit score is to have an open unsecured mastercard or visa. This card should carry a monthly balance of about 10% of your credit limit.

In other words if your limit is $1,000 then try to keep the balance around $100. This shows the credit bureaus two things:

1. Your credit is being used.

2. You have a good ratio of available credit to debt.

In other words you have available credit at your disposal. The credit bureaus weight this factor heavily when they calculate your score.

By showing you have credit that is not being used; your score will get a bump. This method is most effective with a revolving line of unsecured credit.

If you have trouble getting approved for new lines of credit, then consider being added as an authorized user. Find a friend or relative with good credit and ask them to add you as an authorized user to their credit card account.

This is called piggyback credit. There have been policy changes to discredit authorized users from receiving the benefits on the credit report.

However because of the size of the credit bureaus and how difficult it is to change credit scoring between all three credit bureaus this change will take time to implement. It is estimated that the authorized user will still receive a benefit for the next 6-8 years.

Make sure to use good judgment when choosing a friend or relative. The account will show both positive and any negative information that can be reported. So if the account became delinquent it could hurt your score.

It is very easy to be added as an authorized user. The account holder calls the credit card issuer and says they want to add you as an authorized user. It can all be done over the phone.

You then will have a copy of the credit card with your name on it mailed to your house. I recommend returning the credit card to the account holder.

All the details on the account will then be reported on your credit and the account holders' credit. This is an opportunity for your credit to reflect on time payments and available credit.

It is in the works to discount this method as a way to build credit. However right now it works and it's very cheap and easy.