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If you've ever applied for or had credit, you are probably aware that your FICO score is important to lenders when they consider granting you more credit. FICO scores are particularly important when you're applying for a car loan or mortgage. If you're currently in a position where your credit is less desirable than you would like, there are things that you can do to increase your score. While there are no instant fixes (contrary to what some “credit repair” firms would have you believe), there are things you can do that will have an impact on your credit report and credit score. Of course, the most important thing you can do to raise your FICO score is to pay your bills on time. If this has been a problem for you in the past, establishing on-time payment records can help. Delinquent payments can have a very serious negative effect on your credit report, so it's essential that you develop a habit of paying bills on time. If you have delinquent accounts, getting current on those accounts and staying current will have a net positive effect on your credit account over time. Again, this does not happen instantly, but it does happen. Paying bills on time is absolutely the most important thing you can do. If an account has gone into collection and you pay it off, the account will stay on your record for seven years; paying it off will not remove it. However, paying off the account will look better to potential creditors than failing to pay it off. If you have credit cards and other revolving accounts, like store credit cards, keep the balances as low as possible; high balances can have a negative effect on your credit rating because you look stretched to potential creditors. If you have a large amount of debt, rather than using balance-transfer cards to move your debt around, you should attempt to pay it off as quickly as possible. If you need help doing this, contact your creditors or a legitimate credit counselor. If you have unused credit cards, leaving the accounts open but unused is the best long-term strategy for improving your credit rating. At the same time, don't open several new accounts all at once; this will not build your credit score and could hurt your credit rating. Your credit “age” is important in your credit score. If you are rebuilding your credit, opening new accounts slowly and paying them responsibly is the best thing you can do for your credit score. Finally, note that your credit score is not affected when you check your own credit; you should check it regularly to insure the information on your report is accurate.
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