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Getting Scores Up


BudCle
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You want to be able to show you know how to handle credit, so it's okay to use your cards in moderation. When your accounts report to the CRAs at the end of the month you want them to show a utilization of under 50% of your credit limit, ideally under 30%. I pay my credit card off in full every month; however, I was making the mistake of paying it off before the due date but after the date that the OC reported to the CRAs. Therefore, even though the balance is paid in full each month and I don't incur any interest, my FICO scores took a hit because it appeared that my utilization was much higher than it actually was. The first month that I made sure to pay off the balance before the OC reported my FICO scores went up by 16 points across the board. Actually, I paid 90% before the OC reported, and the remaining 10% before the due date. I wanted to show that the account was being used, but I'm not sure if that made any difference or not with respect to my FICO scores.

When you purchase your reports online with scores it will tell you what is hurting and helping your FICO and will give you suggestions as to how to improve your FICO. PrivacyGuard and myfico.com offer the same service.

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