Tips on "How To Improve FICO Credit Scores"

• Pay your bills on time. Your payment history, including late payments and foreclosures, can count for one-third of your credit score. Accounts more than 60 days past due will be indicated on your credit report. As the length of your on-time payments increase, so too will your score.
• Check your credit report for errors. Removing errors, especially those negatively reflecting late payments or unpaid credit, is one of the easiest ways to improve a credit score. Look for expired negative records and file a dispute if necessary.
• Reduce your balances. One-third of your FICO score depends on the total amount of balances you owe versus your total credit limit. Try to keep your balances less than 80% of your credit limit to maximize your score benefit. Start with those credit cards that are closest to their limits.
• Keep older credit lines open. Having a long history of active accounts indicated to lenders that you are a good credit risk. It also accounts for 10% of your credit score. Try to use your oldest cards regularly for small purchases and pay balances each month.
• Use credit - but use it responsibly. This includes having credit cards and installment loans with timely payments. Accounting for 15% of your score, a balanced account including a mortgage payment can help homeowners boost their score.
• Avoid new credit. Opening new credit will lower your average account age. In addition, the number of new applications counts for 10% of your score. Under the Fair Credit Reporting Act, you may limit “prescreened” offers by removing your name from nationwide lists. Apply in moderation and take on new credit only when you need it.
• Check regularly for identity theft. Agencies may only provide your information to those with a valid need, such as a creditor or insurer. In addition, you must give consent for this information to be seen by an employer.