How to Increase Your FICO Score
- 1). Opening too many accounts in a short amount of time lowers your FICO score. Spread it out through out the year when you open credit cards or apply for loans.
- 2). Don't cancel a credit card even though it is paid off. The amount of time you have with a credit card company increases your credit history and this is a good thing for your FICO score.
- 3). Increase your FICO score by retaining a line of credit larger than the amount owed. Keep credit card balances low. Keep debt 30% or less based on the amount of the line of credit on your credit card.
- 4). Keep it simple and PAY YOUR BILLS ON TIME! Avoid additional stress in your life by setting up auto pay or direct deposit to pay your bills on time each month. Automatic payment of monthly bills will help prevent late payments. Credit cards can increase an interest rate substantially from just one missed payment and this will lower your FICO score.
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