Tips on Improving FICO Credit Scores

FICO Credit Score - Your credit score is only as good as what shows up in your credit report. Review your reports from all three credit bureaus for accuracy once a year as well as several months before applying for a loan. Changing a mistake on your report - such as a payment that is wrongly labeled as late -- can take 30 days to three months, sometimes longer.

Questions About FICO Credit Scores

What are the FICO credit score ranges?  Credit scores generally range between 350 and 850. Most lenders refer to this as your fico score.

Who determines my score?  Your credit score is compiled by different institutions and is generally a reflection of your credit history as reported to experian, equifax and transunion

Can I improve my credit score? Yes! You may be able to improve your score by paying down on revolving accounts, establishing a payment history and making timely payments.

What is the average score?  Recent studies indicate 646 is the average FICO score.

FICO Credit Score Variables

A) Payment History - Indicates whether you make your payments on time

B) Money Owed - How much you owe in relation to your credit limits and length of credit accounts.

C) New Credit - Are you looking for new credit and opening newl credit lines?

D) Type of credit - Weighs loans - car loan, line of credit, credit card balance.