Payment History Tips

Pay your bills on time.
Delinquent payments and collections can have a major negative impact on your FICO score.

• If you have missed payments, get current and stay current.
  The longer you pay your bills on time, the better your credit score.
• Be aware that paying off a collection account will not remove it from your credit report.
  It will stay on your report for seven years.
• If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.
  This won’t improve your credit score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.

*www.myfico.com

FICO- Amounts Owed

Keep balances low on credit cards and other “revolving credit”.
High outstanding debt can affect a credit score.

Pay off debt rather than moving it around.
The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.

Don’t close unused credit cards as a short-term strategy to raise your score.

Don’t open a number of new credit cards that you don’t need, just to increase your available credit.
This approach could backfire and actually lower your credit score.

*www.myfico.com