What can I do to raise my credit score?
Improve your credit score by first getting a better understanding of what your FICO (some people call it a FICA credit score) credit score is. FICO stands for Fair Isaac Corporation, the company who invented credit scoring methods.
Your FICO credit score changes every time your credit report changes, but it rarely changes very much. Credit score statistics show that only 25% of credit scores change by 20 points or more during a 90-day period.
If you have had credit problems in the past, you will be happy to know that they eventually fade away as they are overpowered by recent good payments on your part. FICO scores take into account that people mature and grow more responsible.
Since your payment history makes up 35% of your credit score, the more months you add to your credit history that show good credit management, the better your credit score will become.
Another 30% of your score is based upon how much you owe. This is sometimes called the credit/debt ratio. Basically, the system looks to see how much credit you have been given by various companies. Then it looks to see how much of that you currently owe.
For instance, if a credit card company has given you a card with a $3000 limit and you have a balance of $300, that shows that you have not gone wild with your credit card.
There is a program available that costs less than $1.00 a week that we can recommend to every American wanting to take better control of their credit. Just take a look at what you get for that low price:
- A copy of all three of your credit reports
- All three of your FICO credit scores
- An explanation of your credit as seen by lenders
- ACredit Management planner to help you take better control
- A Debt Eliminator planner to help you plan getting a better handle on your credit/debt ratio
- A Bill Reminder that tells you when to pay your bills to avoid late payment fees and to maintain a good payment history
- A Home Loan and Auto Loan coach that shows you what interest rate you should qualify for
- A FICO Credit Score Simulator that allows you to see how different things you do may affect your credit score
Click here to enroll in this great program.
You can find more information about how your credit score is calculated by reading the article, Credit Report Score Chart.
You can also find more information in the article, Good Credit Score - Frequently Asked Questions.
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