| If your score is low and you don't know what to do to | | | | cards or loans. If you need to, do it in a short amount |
| boost it, keep reading. The following credit score | | | | of time, such as in a month |
| explanation will help you determine what goes into | | | | Component 5: Other |
| calculating your score and how much each financial | | | | % Of FICO Score: 10% |
| action you take affects the final result. That way you'll | | | | How To Improve It: diversify your credit (car loans, |
| be able to take specific measures to improve your | | | | credit cards, personal lines of credit, etc.) |
| score and make sure it doesn't drop. | | | | Next Step: Get To Work! |
| How To Improve Your Score | | | | Follow the guidelines explained in the previous credit |
| Component 1: Payment History | | | | score explanation and try to do everything you can to |
| % Of FICO Score: 35% | | | | improve your score. However, sometimes it's not a |
| How To Improve It: pay your bills on time | | | | matter of willpower but a matter of money. No matter |
| Component 2: Amount Of Debt | | | | how much you want to pay your bills on time, if you |
| % Of FICO Score: 30% | | | | just lost your job or had a cut in your paycheck, you |
| How To Improve It: keep your debt-to-credit ratio at no | | | | might find it hard to do. |
| more than 30% | | | | If you're deeply in debt and don't know how to |
| Component 3: Length Of Credit History | | | | recover, I suggest you see a professional to help you |
| % Of FICO Score: 15% | | | | pay off your debt. Debt options such as debt |
| How To Improve It: continue to build credit and use it | | | | settlement, credit counseling, or debt consolidation could |
| responsibly to make up for your short history | | | | assist you in recovering your financial freedom. |
| Component 4: New Credit | | | | Research each alternative and consider if it's an |
| % Of FICO Score: 10% | | | | appropriate option for you. |
| How To Improve It: don't apply to too many new credit | | | | |