One of the great mysteries of life is how the three major credit bureaus (Experian, Equifax, and Trans Union) score credit. They all have secret statistical formulas for determining your credit score, but they are unwilling to divulge exactly what, exactly, constitutes your score. This can make it difficult for people with problem credit to try to improve their score in hopes of obtaining a home or car loan later.

While the exact formula is a secret, there are a few things you can do that will undoubtedly improve your score:

Pay off a home equity line of credit. These loans, which allow you to borrow more than once against your home