How to Improve your FICO Score

A good FICO score is essential in getting a good interest rate on just about everything. Here a a few tips to improve your FICO score easily!

Difficulty: Moderately Easy

Instructions

1. Make sure to pay all your bills on time. Paying bills months late will wreak havoc on the FICO score. Just make sure you are organized when you bills come in the mail, and pay them on time. If you are having trouble making ends meet, contact creditor's and attempt to get your monthly payments lowered. Most likely they will lower your payments, any payment is better than no payment.

2. If you have neglected any bills, strive to get them up to date as quickly as possible. Collection accounts will stay on your credit report for 7 years, even if you pay the collection account off, it will still stay on your credit report for 7 years.

3. Try to keep balances on credit cards as low as possible. Anything that has revolving credit, keep a low balance on it. High balances tend to negatively effect your FICO score. Try not to do a lot of balance transfers from credit card to credit card. Just try to pay down the debt, rather than transfer from card to card.

Tips & Warnings

• Only apply and open a credit card if you need it.
• Have and use credit cards, but be responsible.
• Just because you close accounts does not mean they go away. You still have to make sure to pay it off.

Resources

• Improve Your Credit Score
• What is a FICO Score?

[ghostwoman]

on 9/6/2009 This is an awesome article on how to improve your FICO score.

5 Stars and a recommend. Very well written.