Before improving FICO Credit Score it is very important to aware what factors affects your credit score and how FICO calculates your score. FICO measures score based on following factors.
- 35%: Payment History
- 30%: Amount of Money owed
- 15%: Credit history length
- 10%: New Credit and accounts recently opened
- 10%: Type of credits
Avoid Late Payments or Don’t Miss Payments
A major percentage of Credit score depends on your payment history, so how frequently you pay a bill on time helps to improve your Credit score.
Money you owed
Credit score depends on on the utilization of your credit limit too. That means how much amount owed proportional to available credit limit.
Credit History means how long it has been since your credit account opened or used. It includes number of credit accounts, its age, amount of credit limit has been used and record of consumer bill pay ability.
Too many request for Credit card or Account opened recently
Requesting for too many credit cards will lowers your credit score as FICO consider your each inquiry related to new credit, New accounts open or amount of time since new account opened take into the consideration while measuring Credit score.
Use Multiple type Credit
Having only one type of credit affects credit score negatively. Using variety of credit type boost your score as appearance of different type of loans on their credit report indicates consumer have good payment history of course.