How to Get a Higher Fair Isaac Score

The Fair Isaac Score (FICO) is a credit scoring module that was created in 1958 by Bill Fair and Earl Isaac. Fair Isaac Scores range from 300, being the worse credit you can possibly have, all the way up to 850, which is the perfect FICO score. If you have a low FICO score you will find it difficult to get approved for credit as well as a home. Some employers also look at your FICO score before offering you employment. If your Fair Isaac Score is low, all is not a total loss. By consistently following a few principles, you can get a higher score.

Instructions

1

Pay all of your bills on time. This means ensuring that the company or creditor receives your payment by the due date and not after the due date, even if a grace period is allowed. This rule also applies to utility bills, such as electric, water, and cable bills.

2

Avoid exceeding your credit limit on accounts that have revolving lines of credit. It is recommended by financial experts that only 10 to 20 percent of the credit line is used.

3

Ask a spouse or friend who has good credit to allow you to "Piggy Back" on one of their credit card accounts. Piggy Backing means that he will add your name to his credit card account as a joint user. When you are named on his account, whenever he pays his creditor on time it is also helping to boost your credit. At the same time, if he pays his bills late it will do more harm than good to your Fair Isaac Score.

4

Refrain from allowing a lot of creditors to pull your credit report. Each time your credit report is pulled, it will appear on your report. A lot of "Pulls" will lower your score.

5

Open at least one line of credit if you don't already have one. Make a small purchase monthly on the credit card to show that the account is active. Pay off the purchase in full at the end of each month. This reasoning for this is because having no credit can be just as worse as having bad credit. No credit means a lower Fair Isaac Score.

6

Pay off any outstanding judgements or collections for credit accounts. Request that the creditor report to the three major credit reporting bureaus, Experian, TransUnion, and Equifax, that the accounts have been paid off.