How to Boost My FICO Score Now

A FICO score is basically a three-digit number that represents an individual's credit worthiness. The score was originally conceived by Fair Isaac Co., and is used widely by banks and other lenders to determine an individual's eligibility for a loan, mortgage or other forms of consumer credit. FICO scores are based on a person's credit history and ranges from 300 to 850. Generally speaking, most creditors view scores of 760 and above as excellent, while a FICO score that falls below 600 is considered poor. Individuals with poor FICO scores can often find it very hard to obtain credit and sometimes even to find employment.

Instructions

1

Pay bills on time. Bills that are overdue or become delinquent can drag down FICO scores dramatically. On the other hand, the opposite is true when bills are consistently paid on time. Individuals who establish a record of paying their bills punctually each month can expect to see their scores bounce up quickly.

2

Watch the balances on your accounts. Keeping credit card balances low is vital to boosting credit worthiness and FICO scores. Individuals who have nearly maxed out their available credit, or have very high amounts of revolving debt, are perceived as extremely risky from a credit standpoint. By paying down credit card balances, and reducing the overall amount of debt, individuals can quickly boost their FICO scores, especially if they also have a record of always paying on time.

3

Do not open new accounts. Individuals who are trying to boost their FICO scores should take care not to open new credit accounts or make too many credit inquiries. Each time a person opens a new account or makes a credit inquiry, it knocks several points off their FICO score. In order to boost scores, individuals should carefully review their credit accounts and look for opportunities to consolidate their debt and close down cards and other loans as much as possible.