Thread: FICO Scoring revealed

So what can someone do if they want to raise their credit score?

Originally Posted by Bullitt

So what can someone do if they want to raise their credit score?

1. Make EVERY payment on time.

2. Reduce the amount of debt on an open credit card to no more than 50% of the line of credit they are carrying. A good part of your score is how much debt you are carrying compared to how much is available. If you carry only 20% of your credit limit by all lenders, you will be viewed much more favorably than if you have a card or credit line that is maxed out.

3. Spend less than you make. If you budget and are able to meet all your bills, make more than the minimum credit card payments, and still save money in a savings account, then you are better than most Americans right now, and your credit score will improve.

4. Time. The longer you have a positive credit history, the better your score will become.

5. Carry SOME *( a little) credit card debt- Those who carry a little debt are seen as better able to manage debt than those who pay everything off every month.

6. Own, don't rent your home.

7. Stay in one place, at one job, for a longer period of time, and your score will improve.

Those are just some tips that others have mentioned on how to improve your credit score.

As the article says- one late payment to one company can really knock your score down.

Here is an article titled "7 fast fixes for your credit score":

http://articles.moneycentral.msn.com...re.aspx?page=1

Note: Have you checked your credit report, and score? Many people find major errors with theirs. I have had bad information on mine before- they had data from another person with my same name, but a different city, intermingled with mine. If I hadn't gotten a copy of my free credit report, I never would have known. I disputed the data, got it corrected in a week, and my score improved as a result. Always start with checking to make sure the data is accurate.

Here is the link to check your report for free. The score costs extra, but the data itself is free:
https://www.annualcreditreport.com/cra/index.jsp

Originally Posted by James48843

1. Make EVERY payment on time.

2. Reduce the amount of debt on an open credit card to no more than 50% of the line of credit they are carrying. A good part of your score is how much debt you are carrying compared to how much is available. If you carry only 20% of your credit limit by all lenders, you will be viewed much more favorably than if you have a card or credit line that is maxed out.

3. Spend less than you make. If you budget and are able to meet all your bills, make more than the minimum credit card payments, and still save money in a savings account, then you are better than most Americans right now, and your credit score will improve.

4. Time. The longer you have a positive credit history, the better your score will become.

5. Carry SOME *( a little) credit card debt- Those who carry a little debt are seen as better able to manage debt than those who pay everything off every month.

6. Own, don't rent your home.

7. Stay in one place, at one job, for a longer period of time, and your score will improve.

Those are just some tips that others have mentioned on how to improve your credit score.

As the article says- one late payment to one company can really knock your score down.

I agree with all but #5. That one is bad advice and a myth.

Carrying some credit card debt = paying interest, which = money down the drain. It's wiser to pay off your credit card in full each and every month than to pay interest.

Originally Posted by Rod

I agree with all but #5. That one is bad advice and a myth.

Carrying some credit card debt = paying interest, which = money down the drain. It's wiser to pay off your credit card in full each and every month than to pay interest.

Agree, however haveing a revolving debt ie. student loand, car payment, house payment can increase your score higher than some one who doesn't.

Originally Posted by Pill

Agree, however haveing a revolving debt ie. student loand, car payment, house payment can increase your score higher than some one who doesn't.

Concur, as long as payments are made on time. But one technical correction I must point out, those you mentioned are not considered "revolving debt". They are not credit accounts, but simply loans with fixed payments.

Mine is too high how do I get it down?

Originally Posted by nnuut

Mine is too high how do I get it down?

has it been more than 4 hours? the commercial says call a doctor and lay off the levitra. thank goodness we still have access to health care, even if it means an average 7% increase this season.

Originally Posted by burrocrat

has it been more than 4 hours? the commercial says call a doctor.

Call the doctor?

Heck no.

If it stays up more than 4 hours, I'm not calling a doctor- I'm calling all my friends to boast. Woo Hoo. Hey - Looky here- it's lasted MORE THAN FOUR HOURS!! Woo Hoo!

Originally Posted by James48843

I'm not calling a doctor

George Carlin would be proud your finish there, but it may make it difficult to close the casket, how would you like to be re-member-ed?

oh god, i can't see the sensitivity meter, but the general quarters alarm is sounding loud and clear.

from Yahoo / Bankrate


Good Credit Score Not Good Enough Anymore
by Melissa Ezarik
Tuesday, December 29, 2009

With historically low rates, many homeowners are watching closely for the right time to refinance their mortgages. Those with good credit may well recall being showered with praise by a mortgage broker during the initial purchase for that solid credit score.

That was then. This is now.

A few years ago, a score of 620 or higher was good enough. That increased to 680 in early 2008. Then it jumped to 720 in April last year and 740 in August, says Rodney Anderson, senior managing partner of Plano, Texas-based Rodney Anderson Lending Services.

In the past, any score of 700 or higher would get a double thumbs-up from credit experts. Now, rate adjustments begin kicking in at 740, with every 20-point drop adding another adjustment.

In other words, many people who were taking pride in their credit habits either must pay significantly higher or try to make quick changes to nudge their scores upward. "What used to be great is now only good," says mortgage broker Todd Huettner, president of Denver-based Huettner Capital. Refinancing that would have worked a year ago might well not make sense, he adds.

"I have clients all the time who literally wind up with a score of 739, 719, 699, 679 ... and it costs them money to either fix it or pay for it," Huettner says.

One of Huettner's clients, who always had a score of about 740, went to do a refinance and found her current score at 719. "The reason was, she put a new washer and dryer on a store credit card," he says. Many store cards are actually revolving credit, and your limit may well be equal or about equal to the purchase you're trying to make that day.

More: http://finance.yahoo.com/banking-budgeting/article/108486/good-credit-score-not-good-enough-anymore?mod=bb-creditreports