FICO Score Credit Repair

Expensive purchases such as a house or car require a credit score. Every consumer with a credit account has a credit report and score. Unfortunately, not every consumer has a good credit rating; and a low FICO credit score limits your credit options. However, repairing your credit opens the door to several different finance options.

Length of Credit History

The length of time that you've maintained your credit accounts play a role in credit scoring, and people with long credit histories tend to have better scores than someone who just opened their first account. For this reason, keeping accounts (especially older accounts) open helps build your credit rating, whereas closing an account may decrease your length of credit and bring down your score.

Controlling Debts

The way you manage your credit determines your credit score. Managing credit involves using credit, which means pulling out your credit cards occasionally to keep your accounts active. Credit in itself isn't bad. Problems arise when consumers buy impulsively with credit, and then have no intentions of paying off the charge. Debts contribute greatly to credit scoring, and keeping your debts to a minimum helps repair a damaged credit score. The balances on your credit cards should stay well below the limit. Plan to pay off balances completely at the end of each billing cycle to keep debt under control.

Payments to Creditors

A routine of on-time payments help repair a low FICO credit rating because payment history makes up the greater portion of your credit score (approximately 35 percent). There are tips to ensure that your creditors receive your payments on time every month. It helps to write down due dates when your statement arrives, perhaps on a calendar. Budget your money to ensure you have enough funds to make each payment. And lastly, plan to forward payments days before the due date. Disorganization can play a role in lateness, but with automated monthly payments, payments arrive on time each month. And if you can't make a payments, speak with your lender to discuss alternative options.

Cleaning Up Credit Report

Collection accounts, liens and other derogatory information on your credit report damages your file, and repairing your FICO score after a mishap calls for getting negative items removed. Creditors and lenders are under no obligation to remove legitimate negative information from your report. But if you agree to pay off a collection account or old debt, creditors may decide to update your file and remove this information. Check your report with Annual Credit Report and look for errors or derogatory statements. Work with creditors to pay old debts and remove mistakes from your report.