How to Improve a FICA Score

The FICA score is the one score that will follow you all your life. Depending on how well you manage your money that can be a good or bad thing. Raising the FICA score is challenging, but really is about good money management. When someone runs your credit, it is the main thing they are looking for. Your FICA score is, is based on amount of debt versus income, payment history, type of debt and longevity.

Instructions

1

Don't borrow what you can't pay for now. That is a simple rule, but it is the one most people break. Of course this is not about homes or cars, but furniture, dinner out and so on . If you buy a $3000 item and only pay the minimum on it, then you will have paid over $15,000 for it by the time you are done due to interest.

2

Pay your bills on time monthly: One of the most effective means is an American Express (classic). They do not let you carry over the balance without consequences. Paying your bills on time cannot be stressed enough. If there is a history of late payments or discharges then you will be penalized with bad terms or no credit.

3

Get credit: it is the new wave to think that you should not have any debt and that is not true. If you do not have any debt you are in a worse position than someone with bad credit. With the person with the bad credit, they know what they are looking at, but the person with no credit is a toss of the coin.

4

Check all the credit files on you yearly. People sometimes don't find out there is wrong information or even identity theft until they go to purchase a home or a car. Be proactive and take advantage of your free yearly report. Challenge those items that are wrong.

5

Don't open or change too much credit at once or it will work against you. Even if you just got married and changed your last name, change over your credit cards slowly or you could be flagged for fraud or denied credit for opening new accounts.

6

Use associated accounts sparingly. If the other party is late or fails to pay then your credit gets hit.

7

Monitor credit reports: with identity theft at an all time high it is essential that you have your credit reports monitored. This is essential if you have an ex who knows your information or if you have been the victim of identity theft previously.