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About This Editor: A parent and librarian just trying to share some information with the world. Currently a Stay-At-Home Mom of 5, and who jokingly refers to herself as "supermom", she enjoys writing children's books, erotica and anything else that interests her. If you would like to see Ms. Lanham write on a topic that interests you, email her at rlanham_arscompendium@yahoo.com. |
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No one likes to have bad credit. When you hear that your FICO score is low, you just want to cringe. That is normal! Something to remember, though, is that you are not alone in this boat. There are so many people out there just like you, looking for ways to make their credit troubles all go away. And you can make them go away - over time.
When you begin your efforts to improve your FICO score, it won’t happen overnight. Trying to find a quick-fix may wind up being more detrimental to your credit score. “Good things come to those who wait” is the way you should look at it. Take the time to learn about your financial situation, sit down and create a budget, and manage your credit responsibly. When you keep your credit managed and under control over a long period of time, your score will improve. It will be slow, it will be gradual, but it will happen.
Here are some tips to improving your FICO score over time:
Keep paying those bills!
- Pay your bills on time each and every month. When you have late payments, missed payments and payments that are in collection, they can have a huge negative impact.
- When you do miss a payment, don’t fret! Get it paid and keep the account current from then on. The longer you pay all of your bills on time, the more positive an impact it will have.
- Even when you pay off a collection account, it stays on your record for seven years.
- If there comes a time when you just don’t think you can cover everything you owe, contact your creditors. If they cannot help, talk to a legitimate credit counseling service. They will not take away the debt, but they may be able to help you manage it. They will help you create a plan where you will be able to pay your bills on time, which will positively affect your FICO score.
Watch the amount you owe!
- Keep those credit card balances low. When you have a high amount of debt, it will negatively affect your FICO score.
- Don’t move debt from one card to another – pay it off. When you pay off what is called “revolving credit”, you improve your score.
- Closing unused accounts is not an effective way to improve your score in the short-term.
- Opening several new credit cards to increase your credit could hurt you and lower your FICO score. It is just not smart to open accounts you don’t need.
Keep the same accounts!
- If at all possible, keep accounts for a long time. When you have a lot of new cards, it lowers the average account age. This can have a negative impact on your score.
Rebuild credit when you can!
- If you have had problems in the past, it is a good idea to open new accounts and pay them off on time. Keeping a pattern of responsible payment will raise your score.
Don’t worry about a mix of credit types!
- Apply for various credit accounts only when you have a legitimate need. Having a mix of credit types probably won’t help in any way.
- A closed account does not disappear. It can still be affecting your score and showing on your credit report.
- You can have credit cards, but use them responsibly. Having a positive history of on time payments will positively affect your FICO score.
Before you begin to worry to much, make sure you know exactly what your score is. Call any of the credit reporting agencies or an authorized provider of credit reports to get a copy today. (Checking your own report won’t affect your score when you request it in this way.)
The key to this whole article is management. Manage your money and manage your credit, as this is the best way to improve your credit score and your financial security.
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