Raising Your FICO Credit Scores

Hello Everyone:

This week we will be looking into how to increase your FICO credit scores so you will have a better chance at getting an approval on your credit card application.

One of the items you need to do is not go out and apply for every credit card offer that crosses your table or mail box. If you submit a slew of applications, you will bring down your FICO scores in a hurry at the credit bureaus.

Each time you apply for a credit card or personal loan, that causes an inquiry to be posted to your credit report. This inquiry brings your FICO score down a good chunk. Especially if you submit or apply for many offers.

That is a "no no". What you want to do is find an offer that that appeals to your own personal situation. For instance, you might find a zero percent interest card for balance transfers or just getting a card that pays you back on purchases you make.

Another thing you can do to increase your credit score is to raise your credit limit on a card if you have one already. This doesn't mean that you should use the increase. If you max out the card, that will bring down your score because your credit limit was maximized.

Example: you have a card with a $1000 limit on it and you call the bank to increase your credit limit and they approve you for another $1000 on it, do not use that increase! Only use 1/2 your limit on the card. That way you will only be showing on your credit report that you are only using 50% of your card limit.

You will get "dinged" for an inquiry though. Sorry, that's how the system works, but you will win in the long run.

I've rambled enough for this week, so I will be addressing some issues with folks that have bad credit and how they can get a credit card to start rebuilding their credit.

See you all next week!

Michael