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Tuesday, June 26, 2007

Improving Credit Score

The Kiplinger.com article discusses the steps a person can take to boost his credit score. Credit scores such as FICO scores are used by lenders in deciding the interest rates to charge when lending money, and better the score, the lower is the potential interest rate they will charge when lending money. A good score can also result in lower auto and homeowners insurance rates.

As per the article, the FICO score ranges between 300 – 850, with only 13% of consumers having 800+ score, with the median score being 723.

As per the article, some of the things that can help improve one’s credit score include:

- Paying bills on time, including returning library books
- Keeping the balance on the credit card below 25% of available credit line
- Having a longer length of credit history
- Not opening many accounts within a short period of time (closing older account in good standing can actually hurt the credit score)

For complete article, check out:

Kiplinger.com: Demystifying Your Credit Score

posted by Ruby @ 7:31 AM

1 Comments:

At 1:12 AM, Anonymous said…

Yes, a couple of late credit card monthly payments and your credit score dropps down. It is not at all easy to get back on foot and it does take much effort to follow all these steps.

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