| Fireblade6 |
I'm writing this post because I want to get feedback and learn a little bit more among my fellow MDXers about the strategies for increasing FICO scores.
One of my goal is to attain a 750 plus FICO score between all three bureaus- Experian, Equifax and Transunion.
Here is what I learn so far as far as strategies for increasing FICO Scores:
1)Keep the oldest revolving account open no matter what the credit limit is and maintain NO MORE than 40-50 percent usage of the available credit.
2)Pay your mortgage and all bills that is reported to three credit bureaus on time.
3)Keep credit trade lines to a minimum...I heard it is three...if it is something, please let me know.
4)Keep Debt to Income ration to no more than 30 percent.
5)DO NOT have too much credit inquiries especially for different credit inquiries for different purchases...ie car loans, home loans and credit cards...If you want to run your credit for purchases..make sure that it is for one category and not more than one category within a 30 day period...
Can anyone give me feedback as to how I increase my FICO scores?
The reason why I want to increase my FICO scores is for real estate investment purposes... |
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| carguy1234 |
When we pulled our three free credit reports this year, I spent the $8 or so to get a detailed credit score from Equifax. That report breaks down where specifically you are getting hit on your credit score.
Common things are:
- not enough credit history (like you mentioned - it hurts you to cancel old credit cards with a lot of history).
- too high of amount owed on your cards (even if you pay them off each month). This one stinks - it looks like they take a monthly snapshot of the balance for each account, and if they take it a few days before you make a payment, then it looks like you have a high balance
- too high of balance Vs total credit alloted (this is aggregate - add up all the balances and compare against all the credit limits)
- any late payments
- too many credit inquiries (it hurts you to request new credit)
- too many accounts
- proportion of loan balances to loan amounts
So if you want to get a quick bump, you can pay off your credit cards and quit using them for a while, and make sure you don't have too many opened credit accounts. Not clear how many is "too many", but in the 3-5 range I think.
That Equifax report may give you more specific info for your case. I'm over 800 without doing anything special, so you must have something dinging you to be below 750. |
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| laborlitigator |
Pay bills early
Pay off revolving cards monthly
Don't switch credit cards to get the best rate
No more than 50% of your revolving credit limit
780 FICO |
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| G. COLTON |
quote:
Originally posted by Fireblade6
I'm writing this post because I want to get feedback and learn a little bit more among my fellow MDXers about the strategies for increasing FICO scores.
One of my goal is to attain a 750 plus FICO score between all three bureaus- Experian, Equifax and Transunion.
Here is what I learn so far as far as strategies for increasing FICO Scores:
1)Keep the oldest revolving account open no matter what the credit limit is and maintain NO MORE than 40-50 percent usage of the available credit.
2)Pay your mortgage and all bills that is reported to three credit bureaus on time.
3)Keep credit trade lines to a minimum...I heard it is three...if it is something, please let me know.
4)Keep Debt to Income ration to no more than 30 percent.
5)DO NOT have too much credit inquiries especially for different credit inquiries for different purchases...ie car loans, home loans and credit cards...If you want to run your credit for purchases..make sure that it is for one category and not more than one category within a 30 day period...
Can anyone give me feedback as to how I increase my FICO scores?
The reason why I want to increase my FICO scores is for real estate investment purposes...
If I knew what a FICO score was I may be able to assist.
G |
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| Fireblade6 |
quote:
Originally posted by G. COLTON
If I knew what a FICO score was I may be able to assist.
G
A FICO score is EVERYTHING that you need today in the USA to survive. Rent a car, buy a car, buy a house, rent a house, get a job...etc etc etc.
It is a formula in which a company called FAIR ISSACC, Company came up with for the three reporting agencies(CRA) Equifax, Experian and Transunion to report to financial institution and employers the way you handle your credit and money....
I hope this helps. |
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| Maik |
| The actual calculation of the score is very intricate, but there are a few things you can do. Other than paying bills on time, the biggest factor is a ratio of debt outstanding to available debt. So, your score will increase if you have a $100,000 line of credit that has a 0 balance. On the other hand your score will decrease as you use that line. Same with credit cards. Its not enough to pay them off each month, because the credit card company only reports balances, late payments and an indicator that you pay more than the minimum. Keep the balance of your credit cards to less than 30% or so of the available credit. |
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| JL_SS |
quote:
Originally posted by G. COLTON
If I knew what a FICO score was I may be able to assist.
G
Fico |
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| one4gatr |
Being a mortgage loan officer I could spend all day on this topic. I have personally reviewed no less than 20000 different credit reports in my time as a lender. There is one common thread between folks who have great scores. They all manage money wisely.
I tend to agree with most of the info that has been provided.
* Limit Inquiries
* Close ALL revolving accounts that are not necessary (I only carry 1 credit card)
* Limit the balances on credit cards to no more than 50% of the limit preferably 25%.
* Time Time Time
It should be noted that lenders consider any score of over 700 to be stellar so I wouldnt focus too much on the EXACT score but more so how you manage your credit. |
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| dahacker |
In these responses I've seen a lot of correct responses and a lot of incorrect responses.
Rather than re-inventing the X's wheel, just visit:
http://www.myfico.com/CreditEducati...eYourScore.aspx
for info.
I will say that having good credit pretty much solves most of lifes problems in this world. |
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| harmonr1 |
| Closing accounts is good but has no immediate effect. Good credit stays on your report for 9 years, or so I;ve been told. I use to have many, many cards but consolidated and closed accounts about 6 or 7 years ago. But FICO still shows all of the old cards (but does show them as closed). But not complaining...795:) |
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