Tips for Raising Your Score 
It is important to note that raising your FICO score is a bit like getting in shape: It takes time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time.
One general tip is to make sure the information in your credit report is correct. Check your credit report for accuracy at least 90 days before you plan any major purchases, such as applying for a mortgage. If you find errors, have them corrected by the lender and credit-reporting agency. Accurate Credit can help you get your credit back into shape.
Your Score Takes Into Account:
What kinds of credit accounts you have and how many of each. The score also looks at the total number of accounts
you have. For different credit profiles, how many is too many will vary.
Specific Tips For Raising A Score Include:
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Keep balances low on credit cards and other revolving credit. High outstanding debt can affect a score. |
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Pay off debt rather than moving it around. The most effective way to improve your score in this area is by paying down your
revolving credit. |
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If you are having trouble making ends meet, see a legitimate credit counselor. This will not improve your score immediately,
but if you begin to manage your credit and pay on time, your score will get better over time. |
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Do not open a number of new credit cards that you do not need, just to increase your available credit. This approach
could back fire and actually lower your score. |
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Pay your bills on time. Delinquent payments and collections can have a major negative impact on your score. |
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Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report
seven years. |
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FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the
length of time over which inquiries occur. Therefore, do your rate shopping within a focused period of time |
Common Reasons For Low Scores
Here are the top 10 most frequently given reasons for less than desirable credit scores. Note that the specific wording
given by your lender may be different from these:
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Amount owed on accounts |
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Proportion of balances to credit limits on revolving accounts is too high |
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Too many accounts with balances |
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Serious delinquency |
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Serious delinquency and public record or collection filed |
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Derogatory public record or collection file |
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Time since delinquency is too recent or unknown |
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Level of delinquency on accounts |
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Number of accounts with delinquency |
What A FICO Score Considers
There are five main categories of information that FICO scores evaluate. Lenders look at many things when
making a credit decision, however, including your income, how long you have worked at your present job and the
kind of credit you are requesting.
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A score takes into consideration all these categories of information, not just one or two. No one piece of information
or factor alone will determine your score. |
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The importance of any factor depends on the overall information in your credit report. It is impossible to say exactly
how important any single factor is in determining your score. What is important is the mix of information, which varies from
person to person, and for any one person over time. |
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Lenders look at many things when making a credit decision, however, including your income, how long you have
worked at your present job and the kind of credit you are requesting. |
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Your score considers both positive and negative information in your credit report. Late payments will lower your score,
but establishing or re-establishing a good track record of making payments on time will raise your score. |
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35% = Credit Payment History
30% = Outstanding Debt
20% = Credit Mix & New Credit
15% = Length of Credit History |
1. Payment History
What is your tract record?
Approximately 35% of your score is based on this category.
The first thing any lender would want to know is whether you have paid past credit accounts on time. This is also one
most important factors in a credit score.
However, late payments are not an automatic "score-killer." An overall good credit picture can outweigh one or two
instances of late credit card payments. By the same token, having no late payments in your credit report does
not mean you will get a "perfect score". Payment history is just one piece of information used in calculating your score.
2. Amounts Owed
 How much is too much?
Approximately 30% of your score is based on this category.
Having credit accounts and owing money on them does not mean you are a high-risk borrower with a low score.
However, owing a great deal of money on many accounts can indicate that a person is over extended, and is more likely
to make some payments late or not at all. Part of the science of scoring is determining how much is too much for a given
credit profile. A large number of accounts can indicate higher risk of over-extension.
3. Length of Credit History
How established is yours?
Approximately 15% of your score is based on this category.
In general, a longer credit history will increase your score. However, even people who have not been using credit long may get high scores, depending on how the rest of the credit report looks.
4. New Credit
Are you taking on more debt?
Approximately 10% of your score is based on this category.
People tend to have more credit today and shop for credit-via the internet and other channels-more frequently than ever.
scores reflect this fact. However, research shows that opening several credit accounts in a short period of time does represent
greater risk-especially. This also extends to requests for credit, as indicated by certain "inquiries" to the credit reporting
agencies, resulting from your requests for new credit.
5. Types of Credit In Use
Is it a "healthy" mix?
Approximately 10% of your score is based on this category.
The score will consider your mix of credit cards, retail accounts, installment loans, and finance company accounts.
It is not necessary to have one of each, and it is not a good idea to open credit accounts you do not intend to use. The credit mix usually will not be a key factor in determining your score-but it will be more important if your credit report does not have a log of other information on which to base a score.
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