Increase FICO score

Increasing your FICO® score may take time and often there is no quick fix. FICO scores reflect credit payment patterns over time with more of an emphasis on recently reported information than older information. Below are some general tips to follow that may increase your FICO score:

• Focus on the negative factors provided with your FICO score. These represent the main areas where your score could be higher.
• Apply for and open new credit accounts only as needed. Don’t open accounts for the purpose of providing a better credit picture – it probably won’t raise your FICO score and, in some instances, may even lower your score.
• Pay off your bills on time. Delinquent payments, even if only a few days late, 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 after being late, the more your FICO score should increase. Older credit problems count for less, so poor credit performance won’t haunt you forever. The impact of past credit problems on your FICO score fades as time passes and as recent good payment patterns show up on your credit report. And good FICO scores weigh any credit problems against the positive information that says you’re managing your credit well.
• If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor. This will not improve your FICO score immediately, but if you can begin to manage your credit and pay on time, your score should increase over time. And seeking assistance from a credit counseling service will not hurt your FICO score.
• Keep balances low on credit cards and other “revolving credit”. High outstanding credit card debt can negatively impact your FICO score.
• Pay off debt rather than move it around from one credit card to another. The most effective way to increase your FICO score in this area is by paying down your total revolving (credit card) debt.
• If you have had problems in the past, re-establish your credit history by opening new accounts responsibly and paying them on time.
• Manage credit cards responsibly by keeping balances well under the credit limit. In general, having credit cards and installment loans (and making timely payments) will raise your FICO score. People with no credit cards, for example, tend to be higher risk than people who have managed credit cards responsibly.
• Do your rate shopping for a loan within a focused period of time. FICO scores distinguish between a search for a mortgage or auto loan, where it is customary to shop for the best rate, and a search for many new credit cards.
• Don’t close unused credit cards as a short-term strategy to raise your FICO score. This approach could backfire and actually lower your FICO score.
• If you have been using credit for only a short time, don’t open a lot of new accounts too quickly, as rapid account build-up can look risky to a lender.

*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

New Credit Tips- FICO

Do your rate shopping for a given loan within a focused period of time.
FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.

• Re-establish your credit history if you have had problems.
  Opening new accounts responsibly and paying them off on time will raise your credit score in the long term.
• Note that it’s OK to request and check your own credit report.
  This won’t affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.
• *www.myfico.com

College Ready in 12th Grade

This is part five of a five part series on tips to get kids in the right direction toward education. It is time to start the teen- training of how to be a responsible adult. Going away to school means they will have a lot more than just book work to do.

12^th  Grade-

1)      Gather your team- Ask for formal letters of recommendation from all community service roles, past jobs, and create a formal resume.  Build a college resume- find out all you can about the college, the services, transportation, and the world surrounding the college. Where can you get dinner for $3.00 and how can you explore this new world?

2)      FAFSA- Parents need to file taxes right away to avoid delays in the Federal Application Financial Student Aid because it must be completed in January.

College bound at 11th grade??

This is part four  of a five part series on tips to get kids moving in  the right direction towards an education. It is time to start the teen- training of how to be a responsible adult. Going away to school means they will have a lot more than just book work to do.  Help them with a head start.

11^th Grade-

1)      Put a location on the map- Start talking about location of college; this is the year to tour every college that is in the running and to create a notebook that has all the facts together in one place. Print off a paper copy of the FAFSA (federal financial aid forms) form so you know what to expect.

2)      Put your name on the dotted line- Systematically create four written statements that are flawless that you can cut and paste into a variety of scholarship and school applications: a personal statement( who are you and what do you believe in) , the reason you want to college, your role in the community, and a list of references. You will need these when  applying for scholarships

College Bound in the 10th Grade??

This is part three  of a five part series on tips to get kids moving in  the right direction towards an education. It is time to start the teen- training of how to be a responsible adult. Going away to school means they will have a lot more than just book work to do.  Help them with a head start.

 10^th Grade-

1)      Resume Building- Help your student get a summer job or some type of ongoing community service. Having had a job and involvement in the community is imperative to many private scholarships. Kids who see what it’s like in a larger community will also have a higher chance of being able to fit into the college community.

2)      Travel – This is the age when kids notice the world around them in a more adult way and need to interact with it as an adult. Give them a personal budget on a trip and let them spend as they please with minimal parental oversight.  They can make mistakes and find deals on their own terms but they need to navigate all choices in their own realm right down to the foods and fun they pick.  (Just like grownups…)

College bound in the 8th Grade???

Yes,  you read it right, 8th grade (or sooner) is the magic year to start college conversations with children. If you have not started to put money away for college for your kids or if you are strapped for cash do not let that the unbelievably high price of college stop you from stacking up at least a few dollars. START a savings plan and enlist as much help as you can get from family, friends, and community organizations. You would be surprised how helpful EVERY dollar is at college.

If you are within 5 years of college, it is time to start college planning on the bigger life skills training plan. We have outlined some easy tips of how to give those beautiful children a few extra points on their life skills training and give parents a few ideas to help their students grow even when dollars are tight.

 8^th Grade –

1)      Affirm that all is possible- Kids who are told they WILL be going to college or have a family expectation that additional education will be supported have a dramatically higher likelihood of actually going to college and finishing a college degree.

 2)      Put your money on the table.  Start a matching account for the teen that has ½ of their money and ½ your money that will be paid out over the 4 years at college for everyday living expenses that parents have a HANDS OFF relationships to. The amount available at college will be divided into 4 years (or college length) and sent with them in September when school starts. Open as a custodial account and do not remove parent name on it before age 21.