Up Your FICO!
“What’s a FICO?” you’re probably wondering. That’s the short-hand term that describes your credit rating. It comes from the Fair Isaac Corporation, the company that invented the FICO credit risk score that lenders use. You actually have three FICO’s, one from each of the major credit tracking organizations:
If you’re looking to increase or improve your credit rating, usually because you want to borrow funds or take out an insurance policy, here are some actions you that will help. Keep the balance on your credit cards paid off or low. Stop transfering balances to credit cards with lower fees. Be certain your bank reports to the credit agencies listed above. Don’t apply for credit cards you don’t need. Close any accounts you don’t use. Make multiple loan applications (say you’re mortgage shopping, for example) within a two-week period, and they will all count as one credit inquiry, not endangering your credit rating.
These tips can help you qualify for lower rates on your insurance premiums, mortgages, and auto financing.
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