How to Improve Your FICO Score

Rome wasn't built in a day, and the same saying applies in getting a good FICO credit score. It takes a lot of discipline and calculated risks to get to maintain a good rating. The greater challenge, however, is keeping the satisfactory credit score. Below are five doable tips for improving and keeping a good score.

1. Pay off one bill after the other. Consistently keeping up with your bills over a period of time will help your score. Also note that paying off collection accounts will be reflected negatively for at least seven years.

2. Opening credit cards and paying off on time can make your score better than not having credit cards at all. However, make sure you only open just the right amount in relation to your usage. Failure to pay off and moving the debt into accounts will lower your score.

3. Credit history can also help up your score. Therefore, opening a lot of new accounts all at the same time could be damaging, as they collectively lower your average account age.

4. When shopping for a good loan rate, make sure you don't buy into a number of loans all at once. The length of time between each loan is also taken into consideration when FICO scores are calculated.

5. Closing one or several accounts is not the fastest way to better your score. Every account you close will be reflected during score computations and could reflect negatively in your final rating.

Although most credit decisions you make can bail you out now, remember that each of these decisions will end up somewhere in the equation that will eventually lead to your FICO credit score. Open and close responsibly, and make it a point to pay bills on time to avoid the need to be constantly catching up.

Getting Free Credit Report from the Government

You can retrieve your free credit report and free credit score from the government as described in the linked article.

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