What else can I do to raise my FICO score?

Question

I have had a terrible credit history but am trying to make good. Starting FICO 525. I have opened 2 small mastercard accounts and a gasoline charge account and have been current for 6 months. I have reveiwed and paid off all creditors on my credit report. FICO now at 579.

Answer 1

This is how your score breaks down:

35%- payment history
30%- total debt outstanding
15%- length of time you've had credit
10%- types of credit
10%- inquiries and new credit

Now how you can help yourself is to:

1. Get added as an authorized user. If you have a close friend or family member that has excellent credit, see if they'll add you on their account. You don't need a card, for this is just for reporting purposes only. If you're able to be added, make sure that the credit card company reports that account on your credit.

2. Get a secured card. This is the easiest credit card that you can get, without having a credit check. These may be offered where you do your banking or at Bank of America & Wells Fargo, for starters. You would have to put up a deposit upfront to secure the same amount in a line of credit, but the deposit would collect interest while you're proving your credit worthy. If possible, to increase the limit by adding to the deposit every 2 months or so, by doing that once the card does become unsecured, you'll keep that credit line and will have gotten the deposit back with interest. It looks good on a report when you have a high limit because it looks like you're trustworthy with a high limit. The key is to spend a small amount that can be paid off in full on time, every month. After a year of perfect payment history, the card should become unsecured.

Finally the monthly bills that you do have that you're paying regularly on like cell phone, car payment, etc. can be repoted to an agency called PRBC for positive credit. This is perfect if you're just starting out becuase certain things that you pay every month, may not show up on a report. Any payment that you pay can be reported in a scored report that can be used along with your credit reports. There's a lot that's covered in the website below, be sure to check it out.

Answer 2

What can you do to raise your credit score...1-Pay on all credit cards when due. Issing 3 or more consecutive payment may be an indication that you may never repay them.Missing payments on accounts with low balances may not be as harmful to you as missing payment on high balances, because lenders stand to lose less money. High balances on open accounts are a negative factor because lenders worry that you are living beyond your means. Low balances are a positive factor because lenders do not stand to lose as much. Neven using your credit cards may be considered a negative factor because it does not provide lenders with information about how you use credit and repay.Several open credit cards may be considered a negative factor because lenders worry that you are spending or preparing to spend beyoond your means, even if you have not missed a payment or had a late payment. 2- Consoldidation accounts, or paid off credit, and opening another account to pay these off, are often associated with troubled credit and may be a negative factor. This is what is called pyrimiding. 3- Do not continue to apply for credit. This will make your score higher. The time span for lenders to look at new credit is usually within 6 months. Why? Because lenders do not know whether you are shopping for the best offer, or if you are desperately trying to get new credit because of financial trouble.3-Having credit accounts for a long period time is a positive factor because it shows your credit "history" It gives the lender the ability of how you USE your credit cards and also how you REPAY them. 7 years of credit history is considered short and less than 3 years of history is considered little. Hope this helps you.

Answer 3

First, do not shut any existing accounts...While it is true that having too many open accounts can hurt your score, once you’ve opened the accounts, you’ve done the damage. You can’t repair it by shutting the account, and you may actually make things worse.The credit score looks at the difference between your available credit and what you’re using. Shut down accounts, and your total available credit shrinks, making your balances loom larger, which typically hurts your
score.The score also tracks the length of your credit history. Shutting older accounts can also make your credit history look younger than it actually is, which can hurt your score. Ways of improving your score include:
Pay your bills on time. Although actual weight of credit factors will vary by lender, generally your payment history accounts for 35% of your total credit score.Lenders are most interested in your history of managing credit card debt. 30% of your score is based on how much you owe. Owing some money is fine, but if your balances are too large, lenders worry that you're overextended and won't be able to repay them.
About 15% of your score is based on how long you've had a credit history; the longer, the better.10% of your score is based on your mix of credit cards, mortgages, installment loans and other debts. And finally, New credit makes up 10% of your score; lenders worry that you'll borrow too much money if you've recently opened a number of new accounts, so be careful on how you use your new credit tools.Also, be careful of applying for credit with too many companies,Applying for new credit creates multiple credit inquires which generally will hurt your score because for most people, one inquiry will generally knock about 5 points off a score however, ordering a copy of your own credit report or credit score doesn’t count against your score.

Good luck!!!!!!!!

Answer 4

There are lots of ways to accomplish what you want but only 1 best way. If you have lots of time and persistence, you can take a stab at it yourself. I believe, however, that your credit is at least on the same level of importance as taxes (which most people have professionally completed). I know of a non-profit company that does all the leg work for you and hopes to improve your score 90 points in 90 days. Check out the credit repair link at www.totaldebtsolutionsllc.com

Answer 5

Get rid of excess credit cards - even if there's not a balance. If you have $20,000 worth of credit available on cards (store cards included like Sears, Target, etc.), the loan officer has to worry whether or not you'll run it up.

Make sure there aren't people looking at your credit report. Every time someone pulls your report, the loan officer has to wonder if you're opening a new account.

Other than that, it will just take time. Don't carry a balance on your cards if at all possible, and keep paying on time.

Unfortunately, it takes a long time to clean up your credit. Just keep with it, and it will pay off.

Good luck.
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