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Your FICO score is pretty important. Here are some tips to raise it.
- Get Rewarded
If you have a decent track record with payments, call up the credit card issuer and ask for a "goodwill deletion" which means that because of your spectacular payment history, you ask the credit card issuer to remove the few negative missed or late payments from your record. If you are a long loyal customer, then the banks will be more likely to help you.
- Ask For It.
When you speak to your credit card issuer, ask about a raise in your credit limit. Asking this simple question can raise your credit score, as the credit reporting agencies calculate the amount of credit available against the amount of credit used. This accounts for about 15 percent of your credit score. If you get a credit increase of $2,000 it can send your credit card upwards. This is a hard thing to ask for, as most credit card issuers only give out these increases if you can prove a stable income and you have been a loyal customer who has been committed to on-time payments. Also, if you use less than 30 percent of your credit limit, you are more likely to get approved for a credit limit increase. If your cards are maxed out, you will more than likely be denied for a credit card increase.
- Don`t Settle.
Debt management companies offer consumers reduce penalty fees, lower interest rates and figure out a payment plan that works for both you and the lender. If you stick to these guns, you can see your FICO score dropped. But that`s a debt management company, not a debt settlement company. They are two very different beasts. Debt settlement is when you pay a percentage towards the total amount owed, but this isn`t too good for your credit score, as the consumer is not paying off the total debt. When you settle, you also have to pay taxes on the amount. According to the IRS, consumers with $600 or more in debt that has been settled, have to pay taxes on the total amount of the cancelled debt. Debt settlement will help you get rid of debt, but a debt management company is a much better option, as it allows you to build credit.
Don`t be in the dark about your FICO score, make sure you know the number and check back for great ways to keep that score high.