When I moved to Atlantic City to be closer to my university, I was happily surprised when my agent told me that my credit score was 96/100. I later found out from the property manager that my three-digit score was 771, not bad for a broke college kid, right? This didn’t happen by accident, and you can get the same results by following what I did.
Here’s a quick breakdown of how your credit score is normally calculated:
- Credit Score Payment History – 35%
- Amounts Owed – 30%
- Length of Credit History – 15%
- Types of Credit Used – 10%
- New Credit – 10%
For more info, visit www.myfico.com
How to Improve Your Score Faster Without Effort
If you’ve got bad credit, you can quickly fix it using these simple tricks:
Use only 30-35% of your limit – keeping your balance in this range is ideal in raising your score.
Raise your credit limit – extending your spending limit helps you stay within the 30-35% range. However, this is not an excuse for a shopping spree you can’t afford!
Spread your debt on all of cards – this helps prevent you from going near or over 40-50% of your limit and by paying your balance quickly on multiple cards, your credit increases faster as opposed to just one card.
Pay your purchases ahead of time – one very easy method you can do is to simply buy something cheap and pay it off right away. It can be gas, food, or a drink (non-alcoholic of course). One of the things your credit score is based on is how much you spend and how quickly you pay off your debt.
Don’t apply for so many loans and cards within a short time – this doesn’t look good on your record. Wait for a couple of months before applying for others.
File disputes for errors to credit reports – if you know you have been financially responsible and got the paperwork to prove it, dispute your rating for a higher score.
Don’t close your card – closing cards is like giving the credit bouncer a free shot to the gut. Unless it is absolutely necessary, don’t close. Use it for small frequent common purchases or call your provider and explain your lack of need and explore options. They may be able to close it for you and take the blame, keeping your score unfazed.
Your FICO score is important; it is your financial reputation. Everyone can fake an image, but everyone’s financial activity is monitored and evaluated so be responsible. Just look at the government, financial carelessness hurts you and everyone else!