Boost Your Credit Score - WSET.com - ABC13

Boost Your Credit Score

Its one of the most important numbers in your financial life... your credit score.  But according to new numbers from credit rating agency FICO more than 1 in four Americans have scores of 599 or lower, making them a poor risk.

That's more than 43 million Americans.  And since banks are tighter with loaning money, it could mean more people will have a tougher time financing big purchases, like homes and cars.

FICO scores go as high as 850.  599 or below is a red flag.... as banks consider borrowers in that range a risk. So, what goes into your credit score?  These numbers are from FICO:
 

• 35% payment history.  Most important thing is paying bills on time. Late payments can stay on your credit history for years.  Bankruptcies and foreclosures show up for 7 years.
• 30% amounts owed.  The next most important factor is how much you owe.  Basically, the bigger the balance, the lower your score.
• 15% length of credit history.
• 10% types of credit.
• 10% new credit.   Don't try to get around it by opening up new cards...  because multiple credit inquiries in a short period also dings your score.

  And keep this in mind... you can't fix your credit, if you don't know what's wrong.  So take a look at your credit report for negative information, and work on the things that could make your score higher.  To get a free credit report go to AnnualCreditReport.com