Fast Credit Repair
by WBUR

Ten Best Ways To Improve Your Credit Score

When you apply for credit – whether for a credit card, a car loan, or a mortgage – lenders want to know what risk they’d take by loaning money to you. FICO scores are the credit scores most lenders use to determine your credit risk. (Credit bureau scores are often called “FICO scores” because most credit bureau scores used in the U.S. are produced from software developed by Fair Isaac and Company.)

Although many people think there is one credit score, you really have three FICO scores, one for each of the three credit bureaus: Experian, TransUnion, and Equifax. Each score is based on information each credit bureau keeps on file about you. For your credit score to be calculated, you must have at least one credit account which has been open at least six months. As your credit information changes due to new credit cards, new balances, late payments,etc., your credit scores tend to change as well.

Your 3 FICO scores affect both how much and what loan terms (interest rate, etc.) lenders will offer you at any given time. FICO scores provide the best guide to future risk based solely on credit report data. The higher the credit score, the lower the risk. While each lender determines their loan amounts and interest rates differently some generally accepted credit score ranges are:

760-850 – Excellent (best/lowest interest rates granted)

700-759 – Good

660-699 – Fair

659-lower – Poor (worst/highest interest rates, if loan granted)

Taking steps to improve your credit scores can help you qualify for better rates from lenders. Here are some actions to consider:

Pay your bills on time. Delinquent payments and collections can have a major negative impact on your credit score. If you have missed payments, get current and stay current. The longer you pay your bills on time, the better your credit score. Be aware that paying off a collection account or closing a previously delinquent account will not remove it from your credit report. Your FICO score will still consider this information because it reflects your past credit pattern. Keep credit balances low on credit cards and other revolving credit accounts. High debt can lower your score. Pay off debt rather than moving it around. Don’t close unused credit cards as a short term solution to raise your credit score. Owing the same amount but having fewer open accounts may lower your credit score. Be careful about opening accounts your don’t need. Opening new accounts can lower your credit score in the short term. Re-establish your credit history if you have had problems. Opening new accounts and paying them off on time will raise your score in the long term. Apply for and open credit accounts only as needed. Don’t open accounts just to have a better credit mix – it probably won’t raise your credit score. Learn your credit score and actively monitor your credit report. Checking your credit report will not affect your FICO score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.

Although FICO is a bit complicated to understand, getting and maintaining a good credit score is not. And a good credit score can save you thousands of dollars over your life time.

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www.ScoreMoreCredit.com – Business Man of the Year, Billy Alvaro, endorses ScoreMoreCredit.com. You can quickly and legally repair your credit and increase your credit score.
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