Tip Two on How to Improve a FICO score
This may seem as a simple way to improve your FICO score, paying your bills on time. In another post How Your FICO Score Works, you’ll find the large portion of your score is dedicated to your Payment History. That is why it is so important.
Late payments are always an indication of a possible default by the borrower and reducing this is the most important thing you can do. Paying a day or two might not show up as late on your credit report because lenders do not have to report your lateness. This they sometimes don’t if it is a short period of time late. But this will mean you are subject to late fees and a possible interest rate increase.
These late payments can come back to haunt you being that lenders often check your credit report and if late payments are showing up they could raise your interest rate. This is true even if the lender was not even the one you paid late. It also seems the better your credit is the more a late payment hurts your FICO score.
Just pay your bills on time every month that is a great way to improve a FICO score. If you are late you need to concentrate in keeping it the short period of time possible. Your FICO score takes into account the length so if you are 90 days late it is a lot worse than just 30 days.
Related posts:
- Fico Score – Your Credit History and Applications Your credit history makes up 15% of your FICO score....
- Step One on How to Improve Your FICO score Where to start? There are some many things that go...
- Fico Score and Your Payment History Your payment history is one of the most important factors...
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