5 Tips To Improve Your Fico Score

By Author: Elliot Spalding
Total Articles: 14
Comment this article

If you are rebuilding your FICO score or trying to get an excellent FICO score, here are five ways to hopefully give you the boost you are looking for.

First, the best way to ensure you have a good credit score or improve your FICO score is to pay your bills on time. Your payment history is the largest part of your credit score and missing payments will drag you down. The single best way to make sure you pay on time is to use a budget. This helps determine where your money is going and makes sure you are paying your bills on time.

Second is to use a credit card. If you do not use a credit card you will represent a larger risk to lenders and you will hurt your credit score. This does not mean that you can go crazy, but you need to be responsible with it

Third is to pay down your debts and maintain a 10% to 15% utilization. This is calculated by dividing your balances by your credit limits. This is the second largest portion of your credit. If you are above this level you need to find someway to pay down the debt. People have resorted to getting a second job or selling things to reduce their debt. ...
... This is sometimes needed to really make progress.

Fourth, you should not open accounts in the effort to improve your credit score. Accounts that you do not use or need are not going to improve your credit score. You should stick to the accounts you have if they are working for you.

Five, you should be checking your credit report for errors. Bankrate.com says that 70% of consumer credit reports have mistakes on them. These usually are negative and if they are removed they can give your score a boost. This is an easy and forgot about way to raise you credit score and you should start here.

Getting a good FICO score or an excellent FCIO score is going to take time. Tips like paying down you debt is not going to happen overnight. You need to understand how your FICO score works so you can make sure you are doing everything you can to improve it.
To read more about your FICO score you need to visit Elliot's website. There you will learn about the FICO score calculation. Also, he shows you how to get a free credit score online