Individuals and businesses can effectively manage their credit scores by:

1. Paying bills on time – this is the most important factor affecting credit scores. Late payments can drastically lower credit scores.

2. Keeping credit card balances low – a high credit utilization ratio can negatively impact credit scores.

3. Limiting credit applications – multiple credit inquiries within a short period can lower credit scores.

4. Checking credit reports regularly – errors on credit reports can negatively affect credit scores, so it is important to check and dispute any errors.

5. Monitoring credit scores – regularly checking credit scores can help individuals and businesses take steps to improve them.

It is important to manage credit scores because they are used by lenders, landlords, and other entities to determine creditworthiness. A high credit score can lead to access to lower interest rates, better credit terms, and greater opportunities for financial stability. On the other hand, a low credit score can limit access to credit and financial opportunities, and can result in higher interest rates and fees.