Quick Ways to Increase Your FICO Score

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    • There are ways to quickly improve your FICO rating.credit card image by jimcox40 from Fotolia.com

      The FICO score is one of the rating systems used by credit reporting agencies to determine your overall credit score. FICO stands for Fair Isaac Corporation, which is the name of the organization that developed the system. The FICO system is used by Equifax and Trans Union as a primary credit score system, and is used to a lesser degree by Experian as a supplement to the VangateScore system that Experian developed. There are quick ways to increase your FICO score. In many cases these credit repair methods can begin to show positive results in 30 to 60 days.

    Pay On Time

    • Paying your bills early or on time can help to improve your FICO score almost immediately. Most credit accounts and installment loans have a grace period that allows you to make your payment without penalty. But the grace period does not count your payment as being on time. Pay your bills when they are due to help raise your credit score.

    Limit Credit Usage

    • You should keep your credit usage at 35 percent of your available limit or less, according to the financial experts at The Motley Fool. The ideal amount of outstanding balances is 10 percent of your limit. You want to have something on your cards so that you can maintain a positive payment history, but spending the entire available limit on your credit cards can damage your FICO score. To bring your FICO score up you need to bring your outstanding balances down.

    Keep Old Cards

    • One of the mistakes people make is to pay off old credit accounts and then cancel them. Pay your cards down but keep the old credit cards in effect so that you can benefit from their history. Your credit scores go up when you have old credit still in effect and in good standing.

    Do Not Move Debt

    • It can be tempting to move credit card debt from one card to another if the second card offers a lower interest rate or other balance transfer incentives. Negotiate with your existing credit card company to see if they will lower your rate and then pay on your existing account rather than opening a new account a moving your debt. The more credit accounts you open, the lower your FICO score will go.

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