If you own a credit card then you should definitely boost your credit score. Giving your FICO credit score the extra boost increases the likelihood of getting a mortgage and supplements your auto-insurance rewards. If that wasn’t enough, consumers have said that the enhanced credit score led them to be perceived as ideal employment applicants by companies.
Generally, FICO scores are arrayed between 300 and 850 and credit card holders applying for a mortgage benefit the most when their credit score lies above the 700 mark. In order to boost your credit score, you must first understand what it is, its underlying dynamics and an explicit set of guidelines that will have a progressive effect on it. If your FICO credit score is dropping, you need to enhance it before it’s too late.
FICO Credit Score Components
The FICO credit score considers every element that is a part of your credit report. More specifically, it is influenced by the following factors along with their corresponding percentages:
- Payment History 35%
- Amount Owed 30%
- Length of Credit History 15%
- New Credit 10%
- Credit Type 10%
To get exact estimate on your particular FICO credit score you will have to dig up your credit reports and go over them. There are a few different agencies from where you can obtain a copy of your credit report.
Boost Your Credit Score Today
You can boost your credit score today by following these easy steps.
At a whopping 35%, your Payment History has the most significant impact on your credit score. Due to this, it becomes increasingly important that you keep up with all of the accounts that are associated with your credit report. With this you also have to make sure all of your accounts are within their due date. Statistics show that one year of impeccable Payment History paired with no late payments can boost your credit score radically.
The Amount Owed factor is the next largest element influencing your credit score. The amount owed is also known as your debt utilization ratio and it denotes the amount owed to creditors against the credit accessible by you. To keep this ratio just right, you will want to pay off your debts as soon as possible starting with the revolving accounts.
Inaccurate Credit Reports
As mentioned above, you can obtain a copy of your credit report from various agencies including TransUnion, Experian and Equifax. We suggest that you get one from each and review all of them. If you find any discrepancies or errors, then report them immediately. If, for example, your credit report mistakenly shows a payment as late then you must report it to the credit bureau. The removal of a single late payment can boost your credit score.
Click here to find out more ways to raise your credit score.