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    3 Replies Latest reply on May 30, 2008 5:24 PM by DomainDiva

    FICO- is not a four letter word.

    MRFINANCE Adventurer
      What is FICO?

      Now this a topic for discussion. How do I improve my credit scores?

      Come on LUCKIEST and the rest of you mavens tell us all. You started to address this in another discussion but we want to hear more!



        • Re: FICO- is not a four letter word.
          PeoplePawn Wayfarer
          This is an easy answer but proves more difficult in reality:

          I have lived and worked in the US for 13 years. Born and raised in Northern Ireland and worked in the United Kingdom for 9 years before relocating to Seattle. I could not transfer my credit report, driving record or career track record. I started from scratch and as a result learned a lot from the process.

          I am lucky enough to have a little education in this area and can speak from experience with a credit score of 725. This easy answer is as follows:+

          *open a banking and checking account
          *open a credit and pre-paid debit card
          *always pay your bills on time
          *always pay your credit or pre-paid card account on time
          *always pay more than the minimum balance
          *try and pay the full balance every month
          *the credit card companies will continue to increase your credit limit if you follow the above
          *if they do and you need to take advantage of the higher credit lines...use the higher credit lines
          *but make your payments on time and make more than your minimum payments
          *pay the full balance if you can each month
          *seek the on-line support of a credit monitoring solution
          *I use the solution for $8 per month
          *view and monitor your credit profile monthly for accuracy
          * do the above monthly and with 18 months you'll ahve a 700 credit score...probably 750++

          I hope this helps.


          Patrick Kane -

          1 of 1 people found this helpful
          • Re: FICO- is not a four letter word.
            LUCKIEST Guide
            FICO is a credit score developed by Fair Isaac Corporation.


            A credit score is a numerical expression based on a statistical analysis of a person's credit files,
            to represent the creditworthiness
            of that person, which is the perceived likelihood that the person
            pay debts in a timely manner. A credit score is primarily based on credit report information,
            typically sourced from credit bureaus / credit reference agencies.


            Lenders, such as banks
            and credit card companies, use credit scores to evaluate the potential
            posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit
            scores to determine who qualifies for a loan, at what interest rate, and what credit limits.
            The use of credit or identity scoring prior to authorizing access or granting credit is an
            implementation of a trusted system.


            Credit scoring is not limited to banks. Other organizations, such as
            mobile phone companies,
            insurance companies, employers, and government
            departments employ the same techniques.


            Per Google, LUCKIEST
            1 of 1 people found this helpful
            • Re: FICO- is not a four letter word.
              DomainDiva Ranger
              If you can, pay off all credit cards every month. Pay all bills on time.

              Look at your debt to equity ratio that is how much credit line total for all of your cards (ie: 65,000 total credit with 4 credit cards and other open debt as well like autos.... versus how much revolving debt you are carrying. You need to be at about 8% debt every month.

              How many cars are you financing? If more than one..that will hurt...

              Any late payments on a mortgage? (NOTE: This will severely damage your score)

              How much junk is on your report? Go online and look at your report(s) with all three agencies, if there are things that are wrong, dispute them. I recently had 12 old items removed that were wrong. You have to dispute online. The agencies do not take telephone calls from consumers.

              The FICO alogrithim was changed in January 2008 to reflect consumers that pay all of their credit card balances in full each month. But for every improvement they make in one area...the other areas are affected negatively.

              Bottom your bills, stay out of debt, dispute, and hope for the best.
              1 of 1 people found this helpful