How To Boost Your FICO Score

By: Detorreon Pla

Break Studios Contributing Writer

Need to know how to boost your FICO score? If your credit is less than perfect, you are probably seeking sound ways to boost your FICO score. Doesn't it seem like every credit agency in the world wants you to have a certain score before they will accept an application from you? This is a very easy problem to solve, but first you need to be educated on what you need to correct to boost your FICO score.

First you need to get out of debt. Do this before you even think about anything else. If the boat you were on was sinking and it had holes in it, you would first try to remove the water that was inside the boat before you even tried to seal up the holes themselves. If you have problems paying back the money you owe to credit agencies, see if you can work with a debt relief agency to lower the total amount you have to pay to your creditors.
Finance something of value. When you want to build your FICO score, it is a good idea to make purchases on items that cost a lot of money. If you can pay off something that cost a lot of money, it shows FICO companies that you are able to pay your bills promptly.
Always use that credit card. Make sure that you make regular purchases with your credit card and pay the principal and interest back on time. This is something credit agencies watch for and it is something that you should place high importance on.
Have multiple credit cards. Another great technique is to own multiple credit cards, but this in itself won't boost your FICO score. You need to also make purchases with these cards. As you use these cards in sync and are paying them off regularly, you will see your FICO go up pretty quickly. A good amount to have would be at least three to five credit cards.
Pay money owed in installments, rather than by lump sum. Credit card companies would rather you pay them back in installment payments. The reason is because they make more money in the long run if you do this. If you pay $10 a month for something that you owe $10,000 on, eventually you are going to end up paying a lot more than that $10,000 because of the interest they add each month or year to your overall bill.