How to Raise Your FICO

Even if you're a responsible person, a loss of employment or other money problems can make paying your credit cards and other bills challenging. Unfortunately, late or missed payments can wreck havoc on your personal credit score, and these habits can make it nearly impossible to obtain future financing. But regardless of whether your score is currently in the 600s or 500s, there are practical ways to raise your FICO score and become creditworthy.

Instructions

1

Improve your payment history. Make your monthly payments on time to increase a low FICO score. Keep your score high by sending payments several days before the due date or enrolling in automated payments.

2

Control your debt. High credit card balances or a high debt load also plays a role in a low or negative FICO score. Tackle debt by establishing a household budget, eliminating unnecessary expenditures and then using your extra funds to get rid of high balances.

3

Think twice before opening a new account. Applying for new credit creates an inquiry on your credit file, and each inquiry lowers your FICO score. Decline applications for in-store credit and pre-approved credit card offers.

4

Keep tabs on your credit history. Get a copy of your credit report yearly to check for accuracy. Send a letter to the credit bureaus to dispute any misinformation, such as wrong account information or unfamiliar files.

5

Work on repairing your credit after bankruptcy. Quickly raise your FICO score after a discharge by applying for a secured credit card with your bank or another financial institution. Make timely payments with your new account each month to rebuild your credit history. Talk with a bank representative first. Secured credit cards require a deposit and set-up fee.