FICO Score

What is A FICO Score and How To Maximize it

FICO Scores are the credit scores most lenders use to determine your credit risk. You have FICO Scores from each of the three credit bureaus—Experian, Equifax and TransUnion. Each score is based on information the credit bureau keeps on file about you. A strong FICO credit score is important for anyone to have. Loans are a necessary part of life for most of us. Building a solid credit history and maintaining a high credit score can have a dramatic impact on your quality of life now and in the future when you’re considering applying for a loan, mortgage, house or even a job.

Here are some proven ways that you can maximize your FICO score and start restoring and rebuilding your credit.

  • Authorized User Accounts – You can LEGALLY be added to someone else’s credit card, considering they have perfect payment history, and that credit will report on your credit report as well. This technique has the power to increase your FICO score dramatically. You can get more information here.
  • Never use more than 25-30% of the available credit limit on your credit cards. For example, if you have a credit limit of $2,000 never go above $600.
  • If you need to establish credit, open a secured credit card. This is a credit card that is backed by a bank account with a balance. Generally, the credit limit will equal the amount that you deposit into the the account.  You can find our favorite Secured Card here (creditbuildercard)
  • You can also use apply for unsecured cards with guaranteed approval that will report to the credit bureau. Check those out here.
  • Do NOT close any old accounts. Part of your credit score is based on how long you have had established credit. Therefore, if you close an older credit card you will decrease your FICO score!
  • Use all of your credit cards so they will not become inactive and cancelled by the credit card company or not reported to the credit bureaus because of inactivity.
  • Make all of your payments ON TIME. One late payment (especially a mortgage payment) can decrease your FICO score by 50-100 points!
  • If you are planning to get a loan in the next few months, do not try to open any new accounts or get any new credit cards.
  • The best “mix” for a strong FICO score is to have a mixture of trade lines. For instance, a mortgage, a car loan and between 2-5 major credit cards or lines of credit in your name.
  • We have a proven system to raise your scores quickly. We would be happy to answer any questions you might have. Call us for a consultation at 800-459-9410