Improve Your FICO Credit Score By 50
Points or More Quickly!
MySpendingPlan.com Editorial Staff
Your FICO credit score is used
by most lenders to determine your credit worthiness - it was established
by The Fair Isaac Corporation (FICO), who operates MyFICO. A good FICO score
means you can get credit at the lowest possible interest rates.
However, about 60% of Americans have a FICO score of less than 700
(more than that is considered good), which is why they cannot take
advantage of loans at low interest rates. However, with the tips below, you should be able to raise your FICO credit
score by as much as 50 points in under 30 days!
Tips for Improving Credit
Analyze your credit
reports from each of the three major credit reporting bureaus
(Experian, Equifax and TransUnion) and check if there are any errors
on them. If there are, contact the bureaus and have the errors
corrected. Their websites will outline these procedures.
Make sure you get your actual FICO score from MyFICO as well - there
are other "credit scores" out there, but most lenders look at actual
- Do NOT close credit card
accounts that you have paid off. Assuming the annual fees are not
outrageous, just keep them open and do not use them (cut up the
cards!). Your FICO score is higher if you have a low debt to
available credit ratio (the more unused credit, the better)
AND the age of your credit history helps (the older, the better, of
- Try to negotiate with
your lenders directly if there are any wrong or negative items on
your credit report. All your negotiations should be in writing.
Dispute all incorrect entries and also the negative ones. With
repeated negotiations, your creditors will correct the wrong entries
which will boost your credit score considerably. Companies
like Lexington Law can really help here for a reasonable cost.
- Write letters to your
debt collectors or to the debt collection agencies and ask for
written proof that all the accounts they are collecting on are
indeed yours. Most agencies do not have such proof, whereby they
can definitely prove that the bad accounts are yours. In the
absence of such proof, it is extremely easy to get them to remove
these accounts from your credit file.
- If a family member or a
close friend (someone who trusts you completely) has very good
credit, you can become an authorized user on their credit cards.
This way you can use their good credit to improve your credit
score. However, you must make sure that you do not misuse their
credit cards. They do not even have to give you an actual credit
card. They can just add you as an authorized user and hold on to
the card itself, if it makes them more comfortable.
- Open new accounts that
have high available credit limit. But use as little of this
available credit as possible. By maintaining a high credit limit
and very low outstanding balances, you can increase your FICO credit
score practically overnight!
- If you have any old
accounts that have been paid up and have clean credit history, you
should add these accounts to your credit file. This can increase
your FICO score considerably.
- Use the Rapid Rescoring
service. This service enables you to add new updated credit
information to your credit file in less than 3 days from the time
all disputes have been confirmed. It also allows you to get wrong
entries corrected within days instead of the months that it takes
normally. With this new information, the 3 main credit bureaus can
do a rapid rescoring of your credit score, which typically results
in a higher credit score. To take advantage of rapid rescoring, you
have to contact a Rapid Rescore Service. The QuickScore service
offered by Kroll Factual Data is a great place to begin.
So by monitoring your credit
score regularly and taking these steps to improve it, you can increase
your score by 50 points each month and by as much as 150-200 in all.