Fair Isaac Corportion (FICO) provides credit scores to the consumer reporting agencies that provide credit reports. Most credit score improvements require at least 30 days to take effect, states Bankrate. There are some ways, including rapid rescoring, that can help scores within days. For the most part, though, a high FICO score requires months or years of positive credit history.
Balances
Paying down a substantial amount of credit card debt boosts a credit score. This boost occurs over a two-month period, according to Bankrate.
Timing
By looking at their credit reports, consumers can see when their credit card companies post account information each month. Paying down debt a few days before the monthly reporting boosts the FICO score within 30 days, states Bankrate.
Rapid Rescoring
Rapid rescoring organizations work only for lenders who request a rescore for potential borrowers. Rescoring after paying off significant debt or correcting a credit report error takes about 72 hours, according to Bankrate.
Misconceptions
Closing credit card accounts, even those with negative payment history, hurts your FICO score. The less available credit you have, the higher your balance-to-credit ratio.
0 comments:
Post a Comment