4 Methods to Achieve Good FICO Credit Score
February 4th, 2010 Filed under: Uncategorized — Credit Card Author |
Many do not fully understand the importance of a good credit score. For those who are not aware of it, your credit score is extremely important when you apply for loans from creditors or lenders. They would make the decision of whether to offer you loans based on your credit score and credit ratings, thus if you are in need of loans, make sure that you keep your score in good shape, or you would face difficulties in obtaining your loans. The lower your scores are, the lower the probabilities are of you successfully getting the loan that you applied for.
For your information, your credit score is determined based on five criteria, namely your payment history, total amount owed, length of credit history, new credit as well as the type of credit currently in use. Based on these criteria, how can you successfully achieve a good credit score to keep your credit image in good shape? Let us look at four excellent methods to accomplish just this:
1) Never miss payments, ensure that all your payments are made on time – this is the most important thing in your diary, always ensure that you stick to the payment dates to keep your score high. Making payments on time would also help you improve your scores, while missing payments especially for more than a month would show negatively on your credit report. And remember that these bad marks would be in your report for the following seven years!
2) Keep your credit under control, and make sure that you are not mired in too much of debt. Borrow only when it is absolutely necessary, and work constantly on clearing your debts instead of acquiring new ones. Work diligently to make payments to clear your debts, especially credit card debts, and try not to have too many credit cards or maintain accounts that are too close to their credit limits.
3) Maintain and keep good old accounts open, this is due to the face that length of credit history is another important criterion to your score. Keep old accounts that are well maintained open so that they reflect positively on your credit scores. Be careful however, as having too many open accounts could prove to be detrimental as well to keep a good score.
4) Open new accounts with extreme caution and care, and try to shop for new credit as quickly as possible as you do not want a report that shows that you are regularly looking for credit. Also make sure that you open credit accounts that you really need and use, thus keep away from offers that you do not require.
Follow the above-mentioned tips, and watch your FICO credit score improve in no time! All the best!
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