With all the different kinds of information that credit scoring models incorporate, numerous tactics for improving scores are available. However, any action to improve a credit score must be taken judiciously: some actions aimed at improving your score may actually make it worse.
Many individuals reap significant benefits by properly employing these simple FICO score improvement techniques:
- Make payments on time, especially to installment and revolving accounts, as these report to the bureaus monthly
- Do not apply for any new credit cards or loans
- Pay credit card balances down to 30% of your credit limit or less
- Make sure your credit card company reports a limit
- Keep 3-5 open and active accounts in good standing on your credit report
- Review your credit report every year
Not sure what your credit looks like to a Mortgage Lender? Contact Us today for a free evaluation and review to see how you can improve your credit.
