How to Boost Your FICO Score

Video Transcript

"This is financial adviser Patrick Munro talking about how to boost your FICO score. The FICO score, or the Fair Isaac's Score, is the primary score of a credit reporting agency that monitors your affairs and decides whether or not they will give you credit. There are three bureaus that are merged into the FICO score, the credit bureaus being Equifax, Experian, and TransUnion. They all report data differently, but once it's funneled into the FICO, it does come up with a score. Normally, that score's referred to as a tri-merge because there are three bureaus coming into one. The way to boost your FICO is to make sure you keep credit card balances low, make sure you pay your payments on time, make sure you don't have too many open accounts, and don't make too many inquiries on your credit file looking and seeking for additional credit. If you can monitor and keep those issues at bay, you will boost your FICO score. It will become higher and higher the more you follow into those particular guidelines. This has been financial adviser Patrick Munro talking about how to boost your FICO score."