How to Raise Your FICO Score in 7 Easy Steps

Video Transcript

"This is financial advisor Patrick Munro talking about how to raise your FICO score in seven easy steps. The first step that you need to take is look in the mirror and make a commitment to yourself that you're going to pay down your debt and stop buying things on credit. So what you need to do then as step two is to gather up all of your bills, make sure you get everything together under one pile if you will. Step number three is to segregate the highest interest rate credit cards that you do have and put them in a descending order from highest to lowest. Step number four is to attack the highest credit card first, and put more excess dollars on that. Therefore making it a goal to pay off the highest credit card then, moving on to the second highest, etcetera, etcetera. Step number five is basically once that is done, make sure that you continue to pay the rest of your bills in a timely fashion. Part of the FICO score is that you never have a late charge. Once that happens, you're going to see your ration start to go up. Step number six is to maintain that posture for at least ninety days. And that's when they review the cycle every ninety days and your score begins to get better and better. And finally, step number seven, go back to step number one, when you looked in the mirror and congratulate yourself because you now have raised your FICO score. This is Patrick Munro, financial advisor, talking about how to raise your FICO score."