How to maintain a top-notch credit score

Bad credit can hurt your chances of getting a decent mortgage or car loan, so we've decided to lay down the basics on getting and maintaining a top-notch credit score.

What is an ideal credit score? A good credit score is 750, that's 100 points higher than last year's positive credit score. If your credit score isn't this high, it's time to follow these four basic rules. And stick to them! You credit score will only grow.

Keep your balances below their limits

Always keep your balances below their limits. Experts call a "utilization ratio" where your balance doesn't exceed 25 percent of your available credit limit on your card. What do lenders want to see? They want to see that you have credit, but don't use it. This means you're a safe customer, and more lenders will be knocking on your door.

Don't pay your bills late

Whatever you do, pay your bills on time. Yes, this sounds extremely basic, but missing a bill by a day or two can be easier than you think. 35 percent of your entire credit score depends on paying your bill on time. Figure out the days when you get paid, and set up an automatic transfer to pay your credit card bills from your checking account online the day after your payday. This way, your credit card bill will be paid on time, and you will only see the money in your checking that you physically have to spend.

Don't have too many... or too few cards

Have no more than six credit cards, and no less than two. Having only one for emergencies can lower your score. Store cards shouldn't be included (and try not to use these!). The rating agencies rank them lower than a conventional credit card according to the Associated Press.

Open one account at a time

Open one new card at a time. Lenders know what you are up to if you're opening more than one account at a time. It's a credit score red flag. Also, make sure you have a home mortgage before you go on an Ethan Allen furniture shopping binge.