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The first step in any action plan you put together to improve your credit score is to simply manage the debts you already have in a professional manner. Simply look over your credit report and see where your monthly expenditure is going. If you have extra cash put it towards existing debts.
If you have become to friendly with the plastic there is no need to cut the credit cards up. This can actually damage your credit. If you have any existing lines of credit keep your accounts open and always pay at least the minimum payment on time.
Why you should not cut up your cards
You already have an existing line of credit. On your credit report you want this to show that it is being managed rather than unused. It adds to your credit worthiness. If you are overusing it leave it at home. Heck, throw it in the attic if need be. It can always be used in emergencies. If you have a poor credit rating then chances are you may find it difficult to open another account. So keep the ones you have and manage them well.
When a creditor looks over your credit report they are looking to ensure that should they take you on as a customer that you are responsible and a low risk to their business. By having accounts open and being managed as in paid on time on a regular basis you are establishing your credit worthiness.
It is also important not to be overstretched financially though. If your existing line of debt is a high percentage of your annual income lenders are going to analyze this as well. Should your income level drop they need to know they will still get paid. If your debt is rather high they may well deny an application based on the "what if " factor.
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