There are no quick fixes to improving your credit score. However, in an effort to ensure that your score is as good as it can be, you should seriously consider following the tips. These tips were provided by Fair Isaac. Fair Isaac’s credit scoring system, known as FICO scores, is one of the most commonly used credit scoring systems in the credit industry.
The item above regarding collection accounts deserves special attention. Collection accounts are the result of non-payment of a bill. For example, if you have a medical bill that went unpaid, the medical service provider may assign the bill to a collection agency. When this occurs, the account is listed as a collection account on your credit report.
If you pay off the money owed after being contacted by the collection agency, the record of this occurrence will stay on your credit report. It may indicate that the debt has been “satisfied” but nonetheless, the event stays on the report and will be viewed negatively by lenders and creditors.
First of all, even though it is sometimes tempting to take advantage of “special rates” such as low interest rates offered by some credit card companies, be careful! Oftentimes, these special rates are only “introductory” rates and may dramatically increase within a few months. ALWAYS read the fine print and ask questions!
Furthermore, balance swapping and shifting between credit card accounts will make your credit report look like the stock market—up and down, up and down. Remember, stability is key.
Because you want to always limit the number of inquiries that appear on your credit report, you should check out your financing options for a car or a home mortgage within a short period of time. Credit scores distinguish between a search for a single loan and a search for many new credit lines, in part, by the length of time over which inquiries occur.
The important point to remember here is that obtaining a copy of your own credit report for review does not affect your credit score. So go ahead and get a copy to ensure that its contents are correct.
Finally, closing an account does not remove it from your credit report. Remember, your credit report is a history of your credit activity.
The item above regarding collection accounts deserves special attention. Collection accounts are the result of non-payment of a bill. For example, if you have a medical bill that went unpaid, the medical service provider may assign the bill to a collection agency. When this occurs, the account is listed as a collection account on your credit report.
If you pay off the money owed after being contacted by the collection agency, the record of this occurrence will stay on your credit report. It may indicate that the debt has been “satisfied” but nonetheless, the event stays on the report and will be viewed negatively by lenders and creditors.
First of all, even though it is sometimes tempting to take advantage of “special rates” such as low interest rates offered by some credit card companies, be careful! Oftentimes, these special rates are only “introductory” rates and may dramatically increase within a few months. ALWAYS read the fine print and ask questions!
Furthermore, balance swapping and shifting between credit card accounts will make your credit report look like the stock market—up and down, up and down. Remember, stability is key.
Because you want to always limit the number of inquiries that appear on your credit report, you should check out your financing options for a car or a home mortgage within a short period of time. Credit scores distinguish between a search for a single loan and a search for many new credit lines, in part, by the length of time over which inquiries occur.
The important point to remember here is that obtaining a copy of your own credit report for review does not affect your credit score. So go ahead and get a copy to ensure that its contents are correct.
Finally, closing an account does not remove it from your credit report. Remember, your credit report is a history of your credit activity.
