Raising credit score?
what is the best and fastest way to raise your FICO credit score. What things stick out the most the they dont like, and what can be done to raise the score? Paying off debts, like credit cards? I Two cards with pretty high limits that are not even activated yet, but sure they show up on my report. They have not been used at all. but are availabe for use once activated with home phone call. I could call and close these out completly. I have two other cards, once 1200 balance and other 2200 balanece Thats it. What is the best thing to do to improve the score the fastest? Right now I am at a 694 score (Tier B) Thanks
Public Comments
- There's a couple key factors in looking at credit card balances: First, how much you owe against any one card, compared to that card's limit. Anything owed over 50% of your limit will bring your credit score down. Second, the total amount you owe on all cards compared to the available limits on all cards. It can be better to take one maxed out card and spread it over 3 cards sometimes. But having too many open accounts with balances can hurt you too. Ultimately, it's a dance. Do not close out the other cards, just let them sit. Unless you're paying to have them, they won't really hurt you. The longer you keep accounts open, the better your score. So closing accounts can sometimes work against you. If the inactive cards have much higher limits than the cards you actually use, move your balances over. Having large limits can work in your benefit, as the systems do credit you for the inverse logic of having a bank give you a large line of credit because your score is so good. Ultimately, there's approximately 42 different "reason codes" that impact a credit rating. All have their own weighting, and the underlying algorithm is proprietary and secret. Go to myfico.com for some easy information.
- Keep your credit card balance below 30% of your credit limit. that will really help you out. another you should do is pay off your cedit balances in FULL every month. take a few small loans, make your payments on time, and pay then off after about 6 or 7 months. there is no real quick way to build credit. it requires some time.
- Credit score is affected by major things, how much do you owe in unsecured debt (credit cards), how much of a history do you have of paying your bills in a timely manner, and how much outstanding credit you have (how much could you charge up if you decided to). Now the first two are the most important. If you do decide to pay off the credit cards your score would go over 700 easily, BUT, realize that it can take up to 3 months for it to appear on your credit report....so quick may not be the option here. You could of course order a copy of your credit report and then inform the reporting company that you have paide off these debts and that they need to update their reports. Some may do it quickly...others drag their feet. Either way, sounds like you are looking to get a secured loan (car/home) and though a tier two sounds bad, it's actually the second best rating that you can get, so not bad at all.....Good luck in whatever it is that you are trying to finance.
- Pay your bills on time and pay off debt
- Credit Scoring is tricky -- debt to avail credit - avail credit to income, history of debt, secured vs unsecured debt, etc.... Yes, if you applied & were approved for an account, even if you haven't activated the CreditCard then it would have to appear on your credit bureau report to be in compliance with FACTA In most cases it lowers your score to close accounts. Raise your score by paying off 100% of balances owed.
