If you're thinking about purchasing a house or car, your credit score is a very important number. This three-digit number (that ranges from 300-850) determines your "credit-worthiness." It's generated from information on your credit report and will determine the interest rate you get on the money that you borrow.

It's always a good idea to improve your credit score. After all, it's likely going to save you money on interest and, typically, insurance.

If you're looking to raise your credit score, follow these easy steps:

1.Run your credit.
It's always a good idea to know where you stand. You can run free credit reports once a year at annualcreditreport.com. It is best to pull one free report per quarter from Equifax, TransUnion or CSC. The lower your score, the lower your credit rating. 300-580 You'll likely be denied credit or only approved with the highest interest rates. 581-650 You may qualify for credit at high interest rates. 651-710 You may qualify for credit at moderate interest rates. 711-750 You may qualify for credit at competitive interest rates. 751+ You may qualify for the most competitive, lowest interest rates on the market.

2.Get a credit card.
Getting a credit card doesn't mean that you get to overspend. But having and using a credit card or two can really build your credit score. Just make sure you pay it off each month.

3.Always pay your bills on time.
Delinquencies have the biggest negative effect on your credit score. If you have overdue bills, make plans to get them caught up. If you struggle to get that check in the mail, set up automatic payments or alerts on your calendar to remind you.

4.Pay down your credit cards.
Paying off loans (mortgage, auto, student) can help improve your credit score but not as dramatically as paying down - or paying off - your credit cards.

5.Never max out your credit cards.
Lenders like to see a big gap between the amount of credit you're using and your available credit. Try to use only 30% or less of the available credit each month, even if you pay it off at the end of the month.

6.Don't cancel credit cards you don't use.
Canceling old cards can actually lower your credit score because your "capacity" decreases. Keep them open.

7.Dust off an old card.
The older your credit history, the better. So pull out some of your older cards and use them every few months just to keep them active.

8.Do your loan shopping quickly.
Your credit report gets pulled when you shop for a loan. Submit applications to potential lenders within a two-week period. Having multiple credit inquiries can decrease your score. However, a cluster of credit inquiries, for a home loan for example, within a short time period shouldn't hurt you.

You, too, can raise your credit score. It just takes some time and financial diligence.

Credit: MSN Money.com