Is It Possible To Raise Your Credit Score
The simple answer to ‘can my FICO credit score be raised?’ is – In most cases YES. If you are looking for a home mortgage, or are currently paying any kind of home mortgage, than you should know that any improvement in your FICO credit score means you can get a lower interest rate on your mortgage, and be paying less each month.
As for January 2011 the national average credit score is 692. That value is based upon research conducted by Experian. So all the lenders will compare your score to the average, to determine how risky it would be to lend you money. It is possible to have in the same time, a high 700+ score with TransUnion while also having a 680+ credit score with Equifax. How high (or low) is your credit score from 692?
If the average FICO score in the USA is 692, and if your score is currently lower, unless you do something to raise your score, you will be paying thousands of dollars as interest rates on your home loan and on anything you buy on credit.
Why You Must Improve Your Credit Score
If you and your neighbor bought the same new car with credit spread to 60 payments, but your score is lower, you will be paying up to $5000 a year more as credit interest rates.
Yes! You can raise your credit score, here is a professional program many credit customers use to raise the FICO score.
Facts Concerning FICO Score
- 58% of Americans have credit scores above 700
- Good credit score is anything above 700
- Your Payment History is responsible for 35% of your credit score
- Any Outstanding Debts are in charge of 30% of credit your score.
- Nevada and Texas have the lowest average credit score in the nation: 668.
- Minnesota have the highest average credit score in the nation: 721
What Can You Do To Raise Your FICO Score
- Credit score repair begins with your credit report – Like with a medical check, until you do a simple tests, you will not know what is your condition. Begin with requesting all three FICO reports from the major credit bureaus: Equifax, Experian, TransUnion. See what is your score, and what parameters show on the reports.
- Update Wrong Data – You will be surprised how much data which is incorrect is stored on your account name. Do an investigation of the report, any wrong data you find request it to be deleted or fixed.
- Pay down your credit cards 1– The first strategy says you need to check all your credit payments, and pay off those where you pay the highest rates! Those are the most expensive debts for you.
- Pay down your credit cards 2– The second strategy is not to pass the 30% usage of the credit limit. So you should pay any credit payments on the cards where you reach this limit, as the credit bureaus look at credit usage. Both tips (3+4) can boost your score up, as score is affected by pay revolving accounts.
- Payment Reminders – Every bank and lender has some kind of technological payment reminders, email or SMS, use them! Being late on due payments is recorded to the FICO score and lowers your score!
- Add an installment loan– Lenders would like to see you can handle a mix kind of loans. Having only credit cards may be taken that you are risky for any installment loan. People who pay their installment loans regularly are people who seem more steady. Add a small loan you can handle and pay it regularly!
- Get a Credit Card (If you do not have one) – Lenders wish to see you know how to use credit and you have some records concerning credit usage. If you can not get a regular card consider a secured credit card. Both tips (6+7) can boost up your credit when managed correctly.
- Use Old Credit Cards Too– The more credit history you have, the better your score will be calculated. If you stop using the old cards, they might stop reporting to the bureaus… And your score will be determined only by the new credit cards (new=risk). So use the old ones every now and then… show the lenders you have good history with credit cards.
- Goodwill Adjustment – Even the best credit holders can have a glitch and a missed payment will be marked on their credit score. If in general you are a good customer there is a good chance that goodwill adjustment will be granted and the missed payment will be deleted.
- Request a Re-Aged Agreement – If you had a problematic history, which is all recorded, you can ask the lender to re-age all previous delinquencies, if you make a 12 of on-time payments on the same account, they will delete old delinquencies. The Federal guidelines say: Creditors may only re-age your account once in a 12-month period and twice in a five-year period.
Get Some Credit Repair Professional Help
Credit Repair Companies
There are several ways you can repair your credit report and raise FICO score higher. The most easy way (and expensive way) is to find some agent or company to do it for you. They will examine all your credit reports and will build for you a strategy for fixing your current score.
Expect to pay $500-$800 as fees and costs for the companies services as a person will be on the other side using a credit repair university to do it yourself with no sweat.
Raise Credit Score By Yourself
DIY – Do It Yourself credit repair – You can raise your own credit report, by following a few steps. These 1-2-3 steps can raise your credit score by quite a lot of points, as there are usually some parameters that once they are fixed or managed, thy have a large impact on your score.
DIY credit repair programs cost less than $50 and you can expect to improve your score within a month or two. See this recommended Credit Repair University Program.
Raise Credit Score With Software
Remember the credit repair companies mentioned above, well their ‘time is money’ too, so they use credit repair softwares that manage and calculate what needs to be done, and what has the most effect to raise your FICO score, they automate the process for best results – and charge you tons of fees. Well you can use such software by your own and save money.
So What Is Your Next Step?
Every week you are wasting money.. sending dozens of dollars to the rich credit companies, who relay on you to keep doing NOTHING.
If your score is below 700, you might want to do something about it – get this ‘Credit Repair University’ which will save you money and time.
Yes, you might need to invest a small sum to get a grip of things.. But if you think education is expensive.. try ignorance..
You are probably paying thousands of dollars per year in fees and interests to credit companies which could be going straight to your pocket.
So do your math… and take action NOW.