FICO credit score range from 300 to 850, the higher the better

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Tips to raise your FICO credit score
3 years ago
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We have all become increasing dependent on credit. When we see something that we want or need and don't have the cash available, our first impulse is to " use plastic". As you know, when you use credit, you are borrowing money that you promise to pay within a specified period of time. Your payment history is recorded and reported by the three major credit reporting bureaus, who then arrive at a FICO score.

Your FICO score is more than just a number, it is a statistical method used to determine the likelihood that you will pay the money back. It is used to determine the amount of interest rates you will pay on credit cards, car loans and mortgages, and are often used by insurance companies, employers, and landlords. FICO credit scores range from 300 to 850, and a higher score reflects a good payment history. With that said, you want to make sure that your do everything you can to keep your FICO score as high as possible


Pay all of your bills on time - if you have had credit issues in the past, try to have a period of 1 to 2 years with no late payments, past dues, or other deragatory items.

Keep your balance low - because the amount you owe accounts for more than 30 % of your score, don't run up big balances, and pay down as much as you can. It is important for you to understand that if you have accounts that are " over the limit", they may be reported as deliquent, even if you make your payments on time. You can request that your credit limit be increased, however remember not to use it.

Build a strong credit history - keeping in mind that how long you have an account determines 15% of your score, don't cancel unused credit. The longer the history, the more confident a lender can be about your financial behavior.

Don't apply for a lot of credit - Lenders will view this negatively, believing that you are going to get in way over your head with debt. If you are applying for a mortgage, try to limit shopping for a good rate for no more than two weeks, so that the applications are bundled together and count as only one request on your record. Keep inquiries to a minimal.

Make sure that all the information on your credit report is accurate, and dispute any inaccurate items. The Fair Credit Reporting Act requires the credit bureaus and businesses that supply them data to correct inaccurate information, so ensure accuracy of information contained in your credit file. Credit agencies are required by law, to investigate disputed information and correct inaccuracies within 30 days of hearing from a consumer. If you don't get a satisfactory action from the credit bureau, or creditor, you can complain to the FTC. Although they do not get involved in individual consumer problems, your company may lead to some enforcement action. Another option is to file a lawsuit, but these are not easy to win.

Don't pay off old debts - although it is probably considered a morally good thing to do, because let's face it, you do owe the money, paying off old debts can actually hurt your credit scores. Credit bureaus weigh recently activity more than older ones, so a old charge off doesn't have much of an effect when calculating your score. Remember, that most accounts are reported for only 7 years, and contacting an older creditor can extend the reporting period by another 7 years, and can land you in court.
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