How to Improve Your FICO Credit Score - 5 Simple Techniques That Will Save You Money

You cannot improve your FICO credit score overnight. It is a process that takes time, but is well worth the effort. Here are five simple steps that will increase your credit score.

Difficulty: Moderately Challenging

Instructions

1. 
    

   Pay Your Bills On Time Every Month - If you are delinquent when paying your bills your credit score can be negatively impacted. The key to increasing your score revolves around paying your bills on time each and every month.

2. 
    

   Get Current On All of Your Debts - If you have missed a few payments get current on them as soon as you can. As mentioned above in step #1, paying your bills on time will raise your FICO credit score. If you are having trouble paying all of your debts, contact a few creditors and see if they can reduce the minimum amounts due each month. Sometimes they will be happy to simply receive something every month.

3. 
    

   Pay Off Debt - Don't play the zero percent interest game where you transfer balances from one card to another. Concentrate on paying down your debt instead of just moving it around.

4. 
    

   Keep Unused Cards Open - Do not close unused cards as this can lower your FICO score. Keep them open but monitor them for fraudulent activity. Request your free credit reports every few months to ensure that your credit history is being properly reported. Immediately report anything that is inaccurate or does not belong to you.

5. Keep Your Outstanding Balances Low - If your available credit declines, so will your FICO credit score. Keep your available balance at around 60%. This will show the credit reporting agencies that you can handle your debt responsibly.

Tips & Warnings

• Fix the negative aspects of your FICO credit score first. If you have been making late payments, start paying your bills on time.