Improve Your FICA Score

If you want to obtain a new loan than you should probably first check what your Fica credit score is. When you fill in an application for a loan, all loan companies will first look how worthy your credit is and they do this by checking your FICA score. It is a numeric value between 300 and 850 where a high score means your credit is good and a low score means your credit is bad. It is really important to have a good FICA score because lower scores will pay more interest for a loan and are able to borrow less money. So it serves your own interest to improve your score before you try to obtain a loan.

The first thing to do is knowing what your score is. You can ask for it once a year from the leading consumer report agencies: Equifax, TransUnion and Experian. Once you have it you should give it a good look and see if there might be any mistakes in it. Maybe credit card or catalog debts are still mentioned while you might have paid for them. If you can’t find any mistakes than the next thing to do is checking your negative listings. You will need to improve these negative listings in order to improve your FICA score.

So how can you improve your score and make better deals in the future:

1) Pay your bills on time: Paying debts or monthly installments too late will have a negative influence on your credit score report. Sometimes you might not even do it on purpose and forget to pay on time, try to avoid this and pay the bills before the deadline.

2) Contact Creditors: If you have troubles paying your bills than pay the most important ones first and try to seek assistance to pay off you other debts. You can contact your creditors and ask if there is an alternative way to pay off your debts. Most of the time this means you will refinance a loan and pay lower installments but over a longer period of time (which means more interest).

Another thing you can do is contact the companies that show the negative listings on your FICA credit score report. Ask if there is anything you can do to remove those listings from the report.

3) Deal with your Credit Cards: Credit cards might be easy to use but debt by credit cards usage is one of the main problems for people who are in debt. Credit Cards have really high interest and you should try to avoid using them. If you have more credit cards than try to cancel them as every new credit card will have a negative influence on your score. You also want to prevent exceeding your limit.

4) Close Accounts, open new ones: Try to close the accounts which have a negative listing and open a new account. This time try to pay on time in order to prevent any further decrease of your credit score.

Improving your score might not be as easy as it sounds. if you fail believe you are able to do it alone than don’t hesitate to ask assistance because there are enough companies that are happy to assist you.