| Here are 10 surefire score boosters: | | | | histories. |
| Increase your limits. Call your credit card company and | | | | Do not close unused accounts. Closing unused |
| ask to have your limit raised. High credit lines help to | | | | accounts deletes established credit history. If you have |
| improve debt ratios, positively impacting score. A | | | | a card with five or more years of established history, |
| balance of $3,000 on an account that has a limit of | | | | hang on to it. The scoring model looks favorably on |
| $4,000 results in a debt ratio of 75%. A debt ratio of | | | | well-established histories. If you have balances, closing |
| 75% makes a borrower looked "maxed out," | | | | unused accounts also raises your debt ratios, |
| negatively impacting score. In this case, if the total line | | | | negatively affecting your score. Remember that you |
| could be raised to $6,000, the debt ratio would be | | | | can always cut up the plastic, but keep the account |
| reduced to 50%, positively affecting the consumer's | | | | open to preserve account history. |
| score. | | | | Avoid finance companies. The scoring system frowns |
| Never pay late. Negative items posted to a spotless | | | | on finance companies. Pay off finance company debts |
| record have a greater impact on than negative items | | | | and never again use finance companies. |
| posted to a profile that already contains a history of | | | | Don't let charge cards collect dust. The scoring model |
| late payments. If your credit is "perfect" and you get | | | | takes into account how long it has been since a |
| 30 days behind on your car loan, the effect could be | | | | certain account was used. Utilized credit lines |
| dramatic-25 to 60 points, for example. | | | | (assuming they are paid in a timely manner) positively |
| Do your shopping within a 14-day window. The scoring | | | | affect credit score. Cards that collect dust in your |
| model lumps auto and home loan inquiries made within | | | | dresser drawer do not help your FICO rating. |
| a 14-day timeframe together. Car dealerships, for | | | | 3 or more significant relationships. If your FICO file is |
| example, need to pull credit in order to see what | | | | "thin," work to establish three or more significant credit |
| financing a borrower is qualified to receive. The same | | | | relationships-a home loan, a car loan, and a VISA card, |
| goes for home loans. If you are in the market for a | | | | for example. |
| home or auto loan, do all of your shopping within a | | | | The past 2 years are most important. The FICO model |
| 14-day period so that the multiple inquiries will be | | | | gives more serious consideration to recent items. Your |
| counted as a single inquiry. | | | | previous 24 months of history is crucial. If you have |
| Stay away from department store accounts. The | | | | had a bankruptcy, charge off or foreclosure that is |
| scoring model looks less favorably on store charge | | | | more than two years old, you should still qualify for a |
| cards than it does on VISA, MasterCard, American | | | | home loan if your past 24 months of history is |
| Express and Discover. "Would you like to save 10% by | | | | spotless. |
| opening a Target card?" These offers sound tempting, | | | | Check your report for errors. You can check your |
| but taking advantage of such offers can have a | | | | report for free at Realize that 25% of credit reports |
| negative impact on your FICO rating. However, closing | | | | contain errors sufficient to deny consumers access to |
| existing gas or department store accounts could hurt | | | | credit. |
| your score if those accounts have established | | | | Copyright © 2007 Wade Young. |