Articles From Experts
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Express Newsline Articles From Experts |
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You have all heard about FICO scores and some may have faced some problematic situations too because of it. But what is it that makes FICO score so important in market while dealing for loans? Good credit score will guide your lender whether: -- You can be approved for credit for mortgages, car loans, installment loans, and credit cards. -- What interest rate you'll get on those loans. -- The cost of your homeowners and car insurance. -- In some cases, whether you get that job offer you've been hoping for The best way to ensure a good FICO credit score is to manage your credit responsibly over time. How can I improve my FICO credit score? --Order a copy of your credit report. Review it carefully. Correct any significant errors. --Pay your bills on time. --Don't open a lot of new accounts over a short time period, especially if you have a short credit history. --Shop for credit over a short period of time. FICO scores distinguish between searching for credit for a specific loan and searching for lots of different credit lines. --If you have a questionable credit history, open a few new credit accounts, use them responsibly, and pay them off on time. --Don't open credit accounts you don't intend to use. --A credit card or installment loan can raise your score as long as you don't have too high a balance and you pay it off in a timely manner. --Keep your balance low in relation to your available credit. If your credit limit is $10,000, keeping your balance below $2,500 (25%) will improve your score. --Pay off credit card debt rather than move it around to lower rate cards. Moving balances to other credit cards and closing out the old account can hurt your score because it can change the ratio of your total credit card balances to your total available credit lines. How long will it take to improve my fico credit score? Negative items affect your credit score much more quickly than positive items. Late payments can negatively affect your score in just a few months, whereas paying bills on time may take 6 to 12 months to generate a significant improvement in your score.
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