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How to Improve FICO Score: 4 Surefire Tips Guaranteed
If you think dodging monthly due’s using your debit card is doing you any good. Better think again. Most likely, your card is already suffering from a bad rating. And what’s even worse is you’re not even doing anything to save your card. Having a bad credit rating also negatively affects your chances of getting finance.
Every credit card brand has its own rating. Depending on how you responsibly pay your debts, your credit score will be reflective on these. Your credit card rating is a very important score that affects directly your purchasing power and credit option.
FICO Score, What does it stand for? FICO or Fair Isaac Corporation is also one type of credit score that most lenders use to evaluate applicant’s credit standing. Lenders rely on FICO score to determine whether they should grant a loan or not. How to improve FICO score? Actually, there are lots of ways on how to improve FICO score.
Credit Score Category:
- Payment History (35%)
- Total Debt (30%)
- Duration of Credit History (15%)
- Current Credit (10%)
- Credit Card Type (10%)
PAYMENT HISTORY
As you can see, payment history takes the biggest share in the category. One reason why lots of people suffer a negative score is because they fail to meet their dues on time. Paying monthly bills ‘On Time’ is the obvious way to beat this issue. If you can’t pay on time, try at least to notify your lender in advance to inform them.
TOTAL DEBT
Always keep all your active debts under control. If you’re presently under hefty trouble with your debt, your number one priority should be to reduce your present debt as quickly as possible.
CREDIT HISTORY DURATION
The truth behind multiple credit card account is FICO score sometimes give negative score when you close an active account. So if you currently have multiple accounts and you want to keep them all manageable, closing an account should be your last resort.
CURRENT CREDIT & CREDIT TYPE
The last thing you need to know on how to improve your FICO score is to minimize opening new accounts. Opening new credit account will give agencies the impression that you’re constantly looking for a new credit account which can negatively affect your score.
