If you haven’t started playing the FICO game yet, a Pandora’s box of problems awaits you. If you’re ready, hit **start**, I’ve got 10 little-known cheats that will help you get to the next level. You only get one life, but 1mil’s 1ups are here to help you get the second chance you wish you had. Come and get it!
You think high school or college was the last you ever saw of report cards, and grades and scores!? Well my friend you were mistaken, there’s one monster of a score that follows you around for life — your credit score!
There is a wide variety of reports about you available to people you want to borrow money from, but the most largely adopted source is none other than Fair, Isaac & Co., (namesake of FICO) which developed the de facto credit scoring system used by some of the biggest lenders in the nation.
Companies like Equifax, Experian and TransUnion provide this information to financial institutions that deal with you and money to determine your creditworthiness.
Your creditworthiness determines what interest rate you’ll get for loans, or if you will be approved to rent an apartment. Maybe you’re starting to see how your FICO score can wreak havoc on your life! So now that you know the basics, let’s get to the reason why you came here:
10 Ways to 1-Up Your Credit Score
- Know and Track Your Credit Score- You can get the free MyFico 30-Day Trial of Score Watch which will tell you your current score and alert you if there are any changes.
- Never Miss a Payment, Starting Today- So you might not have had the best track record, but if you can keep your credit clean from now until forever your credit score will raise over time by itself! You can pay your bills online or use a direct deposit payment so that you never miss!(+100 pts)
- Never use more than 20% of your Available Credit- This is one of the lesser known tricks to credit score building. If you have a $1000 credit limit on one card, only use a maximum of $200 on it. This rule applies to every card you have.(+15 pts)
- Keep Credit Cards that Have No Annual Fees Open For as Long as Possible- The length of your credit history is a good indicator for your short term performance on paying a bill or loan. So, even if you’re trying to resist the temptation of using your cards, do not close them. Cutting them up is ok. (+25 pts)
- Extend Your Credit Limit on Cards You Already Have before You Get New Ones- This has to do with tip #3 there, it’s better to have more available credit on one card, then to have it spread around multiple cards. Besides, it’s just easier to keep track of, and it will help you not miss your bill cycle. (+10 pts)
- Get Credit Cards that Have CashBack Rewards to Contribute to your Balance- Get paid to use your credit card? Sort of.. With only 2 or 3% returns the trick here is that you have to use your credit card for most of your purchases. You’ll get a couple of hundred dollars back at the end of the year, and you can use it to pay off your debt, or to put away in a Money Market Account.(+5 pts)
- Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit- Not such a tricky maneuver but this one depends on you having another card with a lower interest rate. If you do, try tip #5 — up your available credit on your current lower interest rate card, then transfer the balance. (+10 pts)
- If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan -Avoid getting a negative mark on your credit report, however possible. Beg, plead, make a deal. Once they bring out the smudger, your credit is smudged. Save yourself a major hit, negotiate new payment terms, refinance, — they really just want their money, but some credit places out there are dirty and tricky. Try try, and save yourself 15 points. Remember each hit is compounding negatively against your FICO points! This is a Plan B for those days where you forgot to follow trick #2(+15 pts)
- Take out a Small Personal Loan and Repay it Over a Year-Tricky, but it works. Take out a loan for say $1000 and pay the balance off over the course of the year. If you pay every month on time you will start to build a credit history. (+10 points)
Ask Someone With Good Credit if They will Account Shadow you- This a little tricky but it can do the job. Some credit cards allow you to add other people to your account without giving them an actual card. When your friend pays their bills on time it will reflect on your credit report, so will their available balance! But beware if they miss a payment or become delinquent, it will show up on your report as well. (+25 points)Fico scores no longer consider accounts that are shadowed! Looks like I need a new #10! =)
If you have any questions about your Credit Score feel free to contact me or leave a comment!
You can also get your Full Credit Report here or try the Suze Orman Credit Report Repair Kit
Or if you worried about your score changing you should try the Score Watch
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Thanks man!
Thanks for what?
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Ok I hope this has helped someone in some way! *hoping*
Good advice. You guys rock.
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With an account shadow, how long will it take to reflect your credit score onto thiers. And how long do you have to carry another persons name on the account. Will it negitively effect the person with good credit if the other person has bad credit? Can you take them off after a short period of time (i.e. after they would get a loan?) or do they have to stay on your account for a period of time? Thanks!
With account shadowing all you’re doing is adding their name to your account as a sub account which won’t have any impact on your credit score unless you issue them an actual card and they don’t pay it on time.
The way you help someone else increase their score using this method is simply by paying off your balance on-time every month. If you miss a payment this will negatively impact them as well. It might take 3 or 4 months to get any good gains but the amount of the actual gain depends on which portion of their credit score they need to work on. Remember paying bills on time accounts for only 35% of a credit score. Available credit and credit length also play a role here.
Also I should mention if you remove them from your card they lose the available credit that your card allowed them. This will cause their score to go down whenever you take them off.
Hope this helps!
Hi there, I have couple of questions for you. I have a credt monitoring service and it is currently with my capital one credit card, as I get monthly update on it, new acount and so on. On Jan my credit score was 589 and I just recently got and update on it, my credit score went up to 617. So I was wondering that I’ve been making all the minimum payments on them and I have 2 credit cards , capital one (300) credit limit and sony style credit card 1500 credit limit, and i’ve been making minimum payment. So I’m thinking how’d the credit score went up and I want my credit score to go up to 700 within 3 months, and how do I get this higher within 3 months from now which is by July?. Also since my credit score is 617, is that a good credit score or is it still consider as weak score, Would I be able to get a loan or is that a good score to apply another credit card, from my understanding is that we have to minimize applying more credit cards as much as possible, and is it true that when you apply credit card if it gets declined, your credit score goes lower, if so by how much does it gets lower? Thanks in advance.
Hey there Taz! In regards to your question, there’s so many different things you can do to boost your score but the one thing that’s worked best for me was shrinking my debt to credit ratio by expanding the limits on my cards. Seems like your goal is to get a loan, but you have to understand the whole point of FICO score is to show by some measure how credit worth you are to lenders. Your goal should be demonstrating that you are indeed credit worthy, so in your case focusing on making your payments on time and maybe getting cards with higher limits (but not actually using them) will be helpful for you. It all depends on where your real weak areas are since the break down of things that effect credit scores aren’t equally weighed.
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I have question about credit line limite.
As you said always keep the balance on credit card around 20% of max. It is what i have been doing but seem not really increase much. so i think about go this way .
I will use my credit card to almost max out ( example 1000 limit i use up to 900 ). On my next build cycle once it post in the report i will pay it off. Next build cycle when it start from 0 balance i will do it again .. it mean i do it once every 2 months . Do you think this will boost credit score faster or it will mess it up ?
How important is and how much does paying off old negative accounts help your credit scores, especially if they are primarily medical bills?
Whoa more comments hehe! hey there!
@Ly — the debt to credit ratio is only a piece of the puzzle that comprises your credit score — in your case your credit score may not be largely effected by changes to your balance on your card because you either dont have enough overall credit or there are other negative things impacting your score. Get a comprehensive view of your credit and then start off by addressing things easiest to fix, like correcting errors and making payments on time! You’ll see in time your score will improve!
@Leonard – Medical bills are a pain arent they. In my experience paying off old collection debt doesnt do anything for your credit score — sure you can pay them off and your account will be clear, but the fact that you paid late and there was a collection will negatively impact your score for 7 years even if you pay it of or not. In some cases you may find that not paying it off is the easiest thing to do, but some lenders do check to see if all your accounts are current regardless of your score, but like I said paying it off will not change your score.
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I am trying very hard to increase my score. I have paid everything on my credit report off except for one bill. I will begin working on that one this month. The balances says zero on everything else, one says unpaid (which I will try to dispute this weekend ) but my score went from mid 550 to just now today 603. I do not know what I need to do to get my credit to go higher.
1. No one will let me open a credit card to get new credit? So how do I get new credit, I don’t want to get credit cards w/ those crazy fees.
2. I know it takes about 7 years for these things to fall off, so is it 7 years from when its opened? or 7 years from last reported?
3. I have some collections paid and I saw that if they are paid it takes 2 years to fall off your credit report. Is this true? If so 2 years from open, or last reported.
I would take any help possible. I want a better score and I’m striving to get it but how do I do so when I have everything paid off and no increase in score?
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@isotruth — check out this Post. I hope it answers your questions!
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I recently went through a divorce. I was negligent about our expenses before the process and learned while filing papers that our home was being forclosed on! It was too late to work with the bank. The house has since been sold, but it is not posted as paid on my credit report. My ex and I also paid all of our credit cards off (with one exception). My credit score dropped nearly 100 points when I closed the accounts, but I had no choice in the matter. I know the forclosure will haunt me…anything I can do about that? But, don’t these companies actually LOOK at the credit report anymore (instead of just looking at the score)? I should not be penalized for closing joint accounts through my divorce!!! What can I do?
these past 2 days i been looking up my credit score from various sources (like at least 6)and i just read how that affects my credit through out time but my main question is;
IF I PAY OFF MY DEBT IMMEDIATELY AND JUST OPEN ONE CREDIT CARD AND PAY AS I GO THAT WAY I’M NOT IN DEBT AGAIN, HOW MANY MONTHS OR YEARS UNTIL MY CREDIT MAKES UP AND GOES BEYOND THOSE POINTS THAT WERE DEDUCTED WHEN I WAS PULLING UP MY CREDIT SCORE? because i plan on buying a car in about 9-10 months. also; CAN I KEEP APPLYING FOR CREDIT CARDS OR JUST STOP COMPLETELY AT LEAST UNTIL THE TIME OF PURCHASING MY CAR COMES?
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I have one collection on my account which was for a parking ticket in college. Overall, I have a couple of credit cards that I paid late several times while in college, mainly being stupid and not realizing how high the monthly payment would be. I have student loans that are in great standing. I have started paying everything on time but my score is only a 523. You recommended getting credit limits extended, and you mentioned that you got more credit through your bank. Are these only secured credit cards? Besides paying everything on time, what else can I do within the next year to improve my score?
I have recently moved from the UK to the USA and have no credit here. Is there anyway of tranferring my credit from the UK to here?
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hey i was wondering bout building my credit back up it dropped dwn to 500i wanted to know how how fast and how long will it take as well as wat i got to do to bring it back up to par
I just have one quick question. I tried to finance through a suzuki company and wanted a loan for $3000. They didn’t approve me and said I didnt have enough credit. I went to the bank and had no problem getting the loan. I have always paid my credit cards and bills on time. I have no outstanding credit on cards or through loans. I dont understand how I dont have enough credit. So I guess my question is how do I get more credit?
I am trying very hard to increase my score. I have been paying all of my bills on time except for one. I will begin working on that one this month. Their were 4 items I disputed because they didnt belong to me but when they took it off my credit score was still the same. I do not know what I need to do to get my credit to go higher. There has to be a better and easier way.
Please advise…
OK, here’s my 2 cents on improving Credit …
1) Date 1 Woman at a time .. and always go Dutch (will lead to Savings – which will lead to paying off FULL BALANCE on cards at one shot)
2) Buy items that you NEED .. and resist buying the ones that you WANT.
3) Set yourself a target : 6months / 1 year and prepare an Excel Sheet tracker to make a graph … nothing’s more satisfying than to see the Graph go up every month. In short, tabulate your score.
4) Ask your Credit Card company to provide you with a monthly score .. YES, it is possible. And no harm asking! WashingtonMutual offers me this service!
5) Get into the habit of Saving … you’ll be amazed at how much you can save even after you pay off the bills!
Hope this helps!
- Anuj
Ashburn, VA
I have a question about my business’s credit history. Here’s the build up – I incorporated it as a corporation, established its bank account and got a credit card for it (credit limit 11K), which is apparently linked to my personal credit history. The credit card has a 0% for 6 months offer, so I withdrew 10K from it to jump start my business. I hope to pay it back within 6 months.
My question is this – I have clearly violated your pt. 3 above. What can I do to ensure my business has excellent credit going forward?
Thanks for the great tips!
We were in the process of purchasing a home, and had already been preqaulified. Then because it was a forclosure it took a little longer, which the 30 days had expired in regard to my credit report. So the lender had to repull. Capital One report inaccurate information, and it caused my score to drop from 612, to 502, which I was like wow, that is a huge drop. It has since been fixed, and along the way of arguing them, I decided to go ahead and try and increase it even more, to get a better rate before we close. It has to be a minimum of 580. It has since went back up to 562. I did everything I was suppose to and disputed wrongful debt, and had capial one make repairs to what they had screwed up. I also went ahead and made sure that my credit to debt ratio was no more than 35%, which from research showed that was the best ratio to pay it down too. I do have some old debt, that is in collections from years back, however everything recent is in good standing. Do you have any idea, why after the correction and the information being put back to the same as when it was 612, plus other factors that should have driven it up even more, it now remains at less than what it started at.
Ok I have a personal question, I had over $6,000 in debt, I paid off all but $450 of it… 1 item was opened 3 years after it was delinquent (a ticket I got in Hawai’i while I was in Iraq, cost of it was $201, the ticket date is in April 16, 2006) on top of that it was one item that never showed until February 1, 2009. Then there is 1 company that their number is incorrect on the Credit report and there is no way of getting in touch with these creditors… Now its been almost 7-8 months since they were paid off in “FULL”. Why isn’t my credit score going up?!! It was at 543 before I started and now today on March 05, 2009, it is still 543! When I look at my credit report the items I paid off in full show 0 for the remaining balance… Is there something I am missing here? Please email me so that I may fix this and get back to a life of comfort ability!
Would you recommend I open a third account? I currently have a credit card which I have had since 2006 (in good standing) plus a car note (in good standing too).
Please advise.
My score went from 740 to the. 625.637.640 because I missed a 50 dollar payment what can I do to get it to the mid 700 I closed my amex and I have one card the limited is 1800 dropped from 3000. And my other card is 500 should I close the 500card our leave it open now all my bills come out my bank account. Help please
My credit score is 534 through Equifax. I have lots of unpaid hospital bills and thats about it. I have no major purchases. In the last year I have gotten 3 loans one for $1300,$1000 and $500. I just pulled my credit score and these loans show where they have been paid off and on time but my credit score has not budged. What should I do to raise my credit score? Please help!I wanna buy a car or even a home soon. I am 31 and ready for being a grown-up!What should I do next?
Hey Great Article by the way thanks alot.. I have a question i am a student and i kind a messed up my credit..but however i paid all my credit cards 3 of them..all of them are canceled and no longer accessible to me..i just checked my score which is 505 i know its sucks but its better than anything right now. After long the my credit score will boost up? once again i have no credit cards,not in any kind of debts or collections!!! please email me ASAP!!!
Thanks,
sha
Hi, Great article!!!! and thanks for all your help!!!! I read in another article the following…”Ask a trusted friend or family member to add you to one of their old cards as an authorized user, maybe one that hasn’t been used in awhile. The older your credit history, the better. If your mother agrees to put you as an authorized user on a card that she; had for 20 years, you could see your score increase dramatically. And with the authorized user plan, you don’t even have to have the card in your possession if “Mom” feels better about this plan. (You’ll have to work things out with her on this)” but I have a question about this:
my mom has several cards that she is willing to add me to, but last year she went through a hard time financially and she has a great record of payment before last year than it went down and she is up to date now…will that affect me if she adds me???????
Hi I have 3 credit cards i had almost maxed out that i have just recently payed off how much can i expect my credit score to go up.
GOT ANY STOCK TIPS? AS IN, CRYSTAL BALL? KIDDING ASIDE THANKS FOR HELPFUL CREDIT CARD TIPS…
I have a collection that has been paid off for three years and one that has been paid off for 2 years. I recently got a credit report and they were showing as past due!!! I requested letters to dispute this with the credit agency. I’m just wondering if this will increase my score?? And by how much??
I see you have line on #10 which i have use in the pass can i still use that to raise my score
Hi, I’m 29 and have doubts about how much does the debt that I have affects my credit score. When I was in college I was recieving Veterans assistance because of my late father. In the present, about 7 years later I come to notice that they are charging me the money they gave me. I realized that I had this debt with them when I filed for my tax return for the first time and the money that I was supposed to get back, they sent it to Veterans instead. My current balance is 1,200 and it has been in a collection agency for about a year.
I only have a part time and 2 little ones to take care of and I would like to know, should I make an effort to pay them or can I leave it sit there for a while. How bad is the debt for my credit and would it really make a difference if I paid it off now? Haven’t they already ruined my score?
I have a secured loan and a secured credit card to try and get my score a little better. I also pay all of my utilities bills on time.
Another question, I have a loan from school in forebearance because I only have a part time job. Does that affect my credit?
Those are my main concerns, I would very much appreciate your oppinion.
Thanking you in advance,
Santi
Im in the process of obtaining a mortgage…when the lender checked my score last month, it had dropped 23 points because i paid off my BRobinson account..there have been no late payments in the last 12 months, no new inquiries either…why does paying off dect hurt your score so bad? I was only 3 points away from obtaining my loan, now im 26…Its so crazy!
I have a question, maybe you can help me understand something…A few months ago my husband and I tried to get a loan for a house, and the lady told us we needed to take care of the 3 medical bills on my husbands credit…we did….here it is 4 months later called the lady back to see if we could get approved now and she said no, his score hadnt changed at all… I thought that paying off the medical bills would give him some kind of bump. Why didnt it? (according to her) What I know is she used his transunion score, we tried to get a line of credit at a furniture place to try and rebuild his credit and he was denied… we got the letter as to why he was denied and it show his transunion score had gone up 14 points. This was a few weeks ago, and I talked to the lady a few days ago(the one that said it didnt change). Whats the deal? I dont understand at all.
my credit score is 592 my debt to credit is 82% what can I do to help
i have a 523 with everything i owe is about 10000 i have 4 loans and i pay them on time but its still not going up i make plenty of money to i have no credit cards what can i do. i apply for credit cards but my credit sucks so i cant get one i went to go buy a car and they f***ed me the ran my credit like 30 times with no result so what can i do to build my credit …