Things you can do to improve your FICO Scores and repair your credit 

    Just to set your expectations, repairing a credit score takes time. It can’t be done overnight. However, fixing it is the first step to take in order to improve your score.

     

    You can start working on those repairs with these tips:

     

    Lower the amount of your debt

    Reducing your debt amount can be challenging but not impossible and incredibly satisfying when achieved.

     

    One advice we can give to do this is to avoid using your credit card for daily basic purchases. Then, check each of your account to see how much is your debt and how much are they charging you for interest.

     

    Plan your budget so you can apply more payments to those accounts with higher interest rates but making sure that you don’t miss any payments on your other debts.

     

    Set up reminders for your payment dates

    Missed payments have a huge negative impact your score. Make sure that you are up to date with your payments.

     

    You may want to avail of your institution’s payment reminder program, where you would automatically receive emails or text messages reminders, when your due date is approaching.

     

    Auto-pay (payments are automatically deducted from your chosen financial institution and applied to the amount to be paid) is also another option you can choose. Just make sure you have enough funds in your account to be avoid over drafting.

     

    Additional Tips

     

    Amounts Owed

    Your owed amount is contributing 30% to the calculation of your FICO Score.

    Tips on cleaning up your Owed Amounts

    • Do not close your inactive credit card accounts: Closing those cards is not a good strategy to improve your scores. It would reduce your credit limit and increase the ratio of your debt vs. limit.
    • Avoid getting a new credit card: It affects the total length of your available credit and may lower your score.
    • Fully pay your monthly debt and avoid revolving debts: Paying off or decreasing your revolving credit card debt is very effective in increasing your score.
    • Keep a low balance on revolving credit and credit cards: If your outstanding debt is high, your credit score is affected.
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    News Reporter