How do I improve my Fico® score?

Good credit score is essential for a safe financial future; High rating causes better interest conditions for mortgages, car loans and credit cards to reduce the total amount of the loan. Fair Isaac Corporation (Fico®) is one of the leading companies that determines the credit rating and considers both positive and negative factors in its evaluation. Improvement of Fico® score is possible, but it takes time and determination. This process includes responsible financial measures such as paying accounts in time, maintaining a good debt ratio to the available loan, repayment of debt and building solid credit history. Be sure to examine credit messages regularly and question any misinformation that can negatively affect the score.

Paying accounts in time is the most important step to improve the Fico® score. The creditors will look at the history of consumer payments to determine whether the loan is probably repaid immediately. Any delinquent account - from credit cards to tools to mobile phones-This history is calculated if the offenses have been reported to the credit agency. Although the long -term picture is important, it is particularly important to pay the accounts in time in the months that lead to the application

The total amount has a significant impact on the Fico® score. Maintaining balances significantly under the credit limit helps to improve the score and maintain a good debt to an available credit ratio. Low amounts owe Fico® signals, which the consumer is likely to use loan responsibly and does not rely on the loan to maintain lifestyle. Debt repayment, rather than moving to other credit cards or through secondary loans, helps to improve this Fico® factor.

credit history is also important. Fico® focuses on the age of all accounts and pays attention to the oldest, as well as the average age. This factor can be the most difficult area to improve the Fico® score because it is difficult to repair quickly. Instead ofIf the opening of one credit line to start starting a positive history immediately. Also avoid closing long -term accounts unless necessary; If you do so, it will shorten the credit history and increase the debt to the available credit ratio.

However, do not open several accounts at the same time, as it can immediately your lower Fico® score. Part of the calculation is to consider a new credit. Too much new credit drop the score dramatically.

The remaining part of the calculation is based on the type of credit. Fico® is considering types of accounts - whether they spin, such as credit card or installments such as student loans - and account combinations. Credit cards, retail cards, mortgages, car loans, etc. Help diversify types of loan. While the Madobry mix helps to improve the Fico® score, do not open unnecessary accounts; This will reduce your credit rating.

Fico® score is calculated from information in credit messages. Any misinformation will lead to a lower score. It is necessary to request regularlyand examine the credit reports of incorrect information. Immediately contact agencies to provide correction will help improve the Fico® score.