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Want to learn what affect your credit score and ways to mend your fico credit score

Recently we observed that a lot of credit users do not understand what causes a change to happen on their credit report. One thing is for sure. Having good credit is vital. The truth is that proper credit can determine whether you will own a home or not. Some employers wonât even consider it to employ people with delinquencies on their credit reports. The FDA is a good example on this. The agency screens prospective personnel for several criteria and one of those requirements is wrongdoings on credit reports. Therefore, it is essential for you to know what changes can affect your credit FICO score. In case you donât know what the FICO scoring is all about, it is a system or method that is used by credit reporting agencies to calculate tradelines credit scores.

Two significant concerns can happen due to changes in your credit report. They can either be upward or positive, downward or negative changes. An upward or positive change arises when an account is in functional status, and you make your payments on time. An account is said to be paid on-time when you make payment no later than 30 days past the due date of the statement. Creditors will always report negligence in 30-day increments. You never see delinquency of 15 days or 10 days on your credit report. You can only see delinquencies of 30 days, 60 days, 90 days, etc.

A downward or negative change happens when your account is in negative grade. It means that your account has been delinquent for 30 days or more. That is in increments of 30 days. In such a situation, you are unable to make any payment on an unpaid account balance. Nevertheless, the moment you deposited an amount, the credit report starts to change upward in a positive direction, like from 580 to 581 for example.

Usually, the overall FICO score stating for the three credit reporting agencies are as follows:

Experian FICO: 250-900
Equifax FICO: 300-850
TransUnion FICO: 336-843

The lowest scores show the weakest credit, and the highest scores indicate the most brilliant payment. Below, we will talk about three ways in which you can mend your fico credit score to stay closer to the top of the FICO score ranges.

1. Ensure you make all your payments on loans before they are 30 days past due: This tells the creditors that youâre able to pay your debt on time. Creditors can only send negative information to the credit reporting bureaus when your account is 30 days past due. In other words, you can be late without being reported as long as the delay is less than 30 days. A credit report will have the phrase: "paid as agreed" as current status when you make a payment, even if you were late on the previous amount.

2. Do not pay off all debts: you should not automatically pay off all indebtedness because doing this will not build credit. Building credit is the method of demonstrating to creditors that you can maintain in good standing, a loan that is continuous. But, you should not have a lot of open loan lines. It will display to creditors that you have some debts and is hence, a huge risk to take a chance. Having a lot of open loan lines also can low your FICO scores. Therefore, the less open loan accounts you have, the higher your FICO scores, Experian Credit Reporting Agency.

3. Upturn your credit limit: you can ask your creditors to raise your credit limits to improve your credit scores and not certainly for borrowing more cash. Doing this will bring the same effect as repaying down a loan balance to less than 35 percent of the loan limit. For instance, instead of using a credit card that already has a controllable balance it is wise to use cash so that the credit card balance does not get too near to its limit.

By following the three credit-improving ways above, your credit report will be in good status when you need to borrow money or seek a job.
About Author Robert Hughes :

If you have been searching for the right information on what affects your credit score and ways to mend your fico credit score, the article here will be handy for you. You will learn two significant changes that can affect your credit FICO score and three ways in which you can mend your fico credit score to stay closer to the top of the FICO score ranges. Relax and read on and also visit:-

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Article Added on Thursday, January 17, 2019
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