Helping You Improve Your Fico Credit Scores

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Helping You Improve Your Fico Credit Scores

Do you and your spouse need to improve your FICO credit scores? According to the Fair Isaac Corporation, 60% of all Americans have credit scores less than 750. Fair Isaac's insurance scores run from the 100s to the 900s, with the higher the number, the better.

To find out your score, you can get a free credit report from Equifax, TransUnion or Experian at "Annual Credit Report", which offers credit scores online. Once you know where you stand, you can develop a plan to recover your financial freedom.

First of all, pay your bills on time. This is the single-most important factor in improving credit scores. This means paying not only credit card bills on time, but also mortgage or rent payments, car loans, cell phone bills and utility bills.

These accounts may not show up on an impeccable credit report, but if you're 30 days late on something, it'll show up as an unsightly blemish. It's imperative that you at least make the minimum monthly payments to remain in good standing.

If you've missed a bunch of consecutive payments and your minimum has now exceeded what you can reasonably afford, then you may be able to transfer your balances to a new 0% interest card or you may need a credit counselor to help negotiate a plan for you. Also keep in mind that bounced checks will adversely affect your credit history too. Your overdraft bank account won't necessarily show up on your sample credit report, but the financial institutions can pull up this information using ChexSystems.

Keep an eye on your finances. FICO credit scores are only as good as the data that has been reported. You may know that you paid off an account months ago, but if the collection agency or lender never reported it, then your credit score will still be hurting. Fraudulent or inaccurate account information can stay on your record for as long as seven years if you don't monitor and take care of it right away.

Checking your free credit scores each year online can prevent this from happening. If you notice something amiss, a representative from Equifax, TransUnion or Experian will investigate the claim on your behalf to ensure your report is accurate and up-to-date.

While your score will lower a few points when a lender inquires into your profile, there are no penalties for checking your own credit score as much as you want. You'll also want to check your report several months before you make a major purchase, such as an auto loan or mortgage, because the last thing you want are any surprises during the financing process.

Perhaps the best way to improve FICO credit scores is to haul in more money to pay off debts faster, for one. Of course this is easier said than done, but it's probably the most essential way to regain control of your financial future.

Maybe this means more over-time, a stay-at-home spouse working part-time or striving for that bonus. In addition to using credit cards and paying them off in a timely fashion, it's even more important that you show you've made aggressive efforts to pay down your overall debt.

About the Author

Mike Selvon's portal will expand your knowledge on fico credit scores. Visit us and leave a comment at our credit score factors blog where a free gift awaits you.

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