How to Raise Your Credit Score 100 Points
News from Fox Business:
If you are preparing to apply for a new credit card or a loan, you’ll want to achieve the highest credit score possible. While FICO cannot provide an exact correlation between individual actions and specific points earned because there are so many variables in each credit score, there are steps you can take that will tend to raise your score. Some of these steps will have an almost immediate impact, while others may raise your credit score by as much as 100 points over time.
- Check your credit report. Get a free credit report from each of the three credit reporting agencies (Equifax, Experian and TransUnion) once a year at annualcreditreport.com. Start by looking for errors that lower your credit score and take action to correct them. Next, review the negative factors in the report and fo…………… continues on Fox Business
Why is My FICO Credit Score Falling?
News from Fox Business:
Dear Credit Card Adviser, For the past five years, my FICO credit score has been above 825. This month, I checked my credit score again, as I do annually, and it dropped to the 755 range. Nothing has changed, except that I applied for and received six new credit cards in less than three months. They all are cash-back rewards cards. What happened? — Pat
Dear Pat, Your FICO credit score fell because you opened those six credit cards in a short time. Every time you open an account, you’re allowing creditors to pull your credit report, and you’re lowering the average age of your credit accounts.
Both of those actions will sink your score.
Here’s how it works: When you apply for a new credit card, a lender will pull your credit report and score. This is called a “hard” credit inquiry, and it’ll hurt your score. (It doesn’t hurt your score, by the way, when you pull your own credit report. It also doesn’t hurt when an employer pulls your credit report or when a lender pulls your credit report for marketing purposes. Those are called “soft” inquiries.)
If you have several hard credit inquiries in a short amount of time, the damage to your credit score increases dramatically, says Anthony Sprauve, spokesman for myFICO.com, the consumer education division of FICO.
“Our data shows that someone opening multiple credit accounts in a sho…………… continues on Fox Business