A Fico score is another name for a credit score. Most people are aware of the negative effects a bad fico score can provide. However, improving it is achievable with patience, effort, and having the knowledge to know what the factors are that can lower your score.
One of the easiest and most important ways to improve your score is to pay your bills on time. Being behind on payments will show up negatively on your report. A good tip to remember is that paying your bills for six months straight will drastically improve your score.
Another way to improve your fico score, is by keeping credit card balances low in comparison to your limit. Paying more than the minimum is a good way to do this; so if your minimum is $100, pay $150. Your score is partially determined by this comparison of balance to limit.
As stated before, paying bills on time is very important for your credit score, however many people are surprised to know that medical bills are included in this as well. Although it does not have as much weight as other bills on the report, it can lower your score. So if its a big amount, a good idea is to set up a payment plan.
Inquiries of your report is also a factor in lowering your fico score. Limit the amount of credit cards or loans you apply for to assist in this. Any inquiries you make on your own report are not included in this.
Keep open accounts that you plan on using, but close the ones you have no use for. Financial experts disagree on the affect these have on your fico score, so its best to play it safe. Remember to make sure the balances on the open accounts are low.
Remember to check your fico score. Many companies offer your fico score free if you are a customer with them. Also your accounts may include your fico score. Make sure you do this to keep track of increases and/or decreases in your score.
Fico scores are very important to consumers today because they are what determines, to a large extent, a personas overall credit worthiness. By paying your bills on time, paying more than the minimum each month, paying off unpaid medical bills, and keeping inquiries to a minimum, you can improve your fico score in a short period of time.
One of the easiest and most important ways to improve your score is to pay your bills on time. Being behind on payments will show up negatively on your report. A good tip to remember is that paying your bills for six months straight will drastically improve your score.
Another way to improve your fico score, is by keeping credit card balances low in comparison to your limit. Paying more than the minimum is a good way to do this; so if your minimum is $100, pay $150. Your score is partially determined by this comparison of balance to limit.
As stated before, paying bills on time is very important for your credit score, however many people are surprised to know that medical bills are included in this as well. Although it does not have as much weight as other bills on the report, it can lower your score. So if its a big amount, a good idea is to set up a payment plan.
Inquiries of your report is also a factor in lowering your fico score. Limit the amount of credit cards or loans you apply for to assist in this. Any inquiries you make on your own report are not included in this.
Keep open accounts that you plan on using, but close the ones you have no use for. Financial experts disagree on the affect these have on your fico score, so its best to play it safe. Remember to make sure the balances on the open accounts are low.
Remember to check your fico score. Many companies offer your fico score free if you are a customer with them. Also your accounts may include your fico score. Make sure you do this to keep track of increases and/or decreases in your score.
Fico scores are very important to consumers today because they are what determines, to a large extent, a personas overall credit worthiness. By paying your bills on time, paying more than the minimum each month, paying off unpaid medical bills, and keeping inquiries to a minimum, you can improve your fico score in a short period of time.
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To find out exactly how you can get your annual credit report visit my credit report website.
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