Raising Your FICO Score - Tips To Boost Your FICO Score Fast

If your FICO score is giving you nightmares, don't get disheartened. You are not alone. Only 40% Americans can claim Sell structured settlement have a good score. The rest of us have a low Weneedyou moderate score and have trouble qualifying for loans or commercial van insurance cards. The good news is that there are certain Playthefield you can take to raise your score and get loans at more favorable terms. Before moving on to these steps, let's first understand exactly what the score represents.

F.I.C.O. is a proprietary formula developed by Fair Isaac Credit Organization to calculate credit scores or credit ratings. Your FICO score is a three-digit number in the range of 300 to 850. It is calculated on the basis of various factors, such as your payment history, credit history, and existing debts. Lenders use your FICO score to determine your credit worthiness or your ability to repay your debts.

If you want to improve your creditworthiness and raise your score, follow the steps listed here:

1. Obtain your credit report from one of the national credit reporting agencies-Equifax, Experian, and TransUnion.

2. Check your credit report for any mistakes. Check whether all payments you have made are reflected accurately. If you find a mistake, request for a change. Once these mistakes are corrected, your FICO score will increase.

3. Add any information that shows stability. This can be something as simple as specifying a fixed land line number instead of a mobile phone number and ensuring that employment records are up-to-date.

4. Pay your monthly bills on time. This is important because payment history makes up to 35% of your FICO score. If you have poor payment history, the easiest way to improve your FICO score is to start making regular payments. If you can't afford to make full payments, pay off at least the minimum car insuranc on each bill.

5. Keep your credit card debt less than 50% of your total credit limit. The amount you owe makes up 30% of your FICO score. To push up your score, you must widen the gap between the amount you owe as credit and your total credit limit. To do so, pay off some debt and try to reduce your expenses. Or at least, charge less on your credit card and use cash more often to pay for your purchases.

6. Maintain your old credit accounts even if you are not using them regularly. Length of credit history is responsible for 15% of your score. An old credit account not only increases total credit available to you but also lengthens your credit history. In addition, take care not to open new accounts just before applying for a loan. A new account lowers your score as there is no proven payment record linked with it.

Following these steps can take you a long way toward raising your FICO score and repairing your credit. However, it's important to remember that score improves over a period of time and not instantly. If you are planning to apply for a home loan, start working on your FICO score at least six months in advance.

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