AI News, Fair Isaac Corp, FICO:NYQ summary artificial intelligence
- On 1. august 2021
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7 Ways to Boost Your Credit Score Fast
Like it or not, your credit score dictates everything from whether you’re approved for a credit card to what interest rate you’re offered on a mortgage or other loan.
So, with the economy now teetering on the brink of recession as the coronavirus pandemic sweeps the nation, you would be wise to get your credit score in tip-top shape ASAP.
Here are some of the fastest ways to increase your credit score: Before you do anything else, go to AnnualCreditReport.com and request a credit report from each of the three big nationwide credit reporting companies: By law, you’re entitled to one free report every 12 months.
According to Fair Isaac Corp., aka FICO, the company that calculates one of the most widely used credit scores, 30% of your FICO score is based on the amount you owe.
If your credit utilization rate is high, paying down your balances is a quick way to lower that rate and thus boost your score.
But depending on what point in the month the credit card company reports your statement balance, it might look like you have a $1,000 limit and a $1,000 balance every month.
Go ahead and charge everything to get the rewards, but send in payments at least twice a month to keep your running balance lower.
You could take a different approach to improving your credit utilization rate: Call your creditor and ask for a credit limit increase.
If you’ve maxed out your $1,000 card and get a limit increase to $2,000, you’ve instantly cut your credit utilization rate in half.
If your current credit card issuer balks at the idea of increasing your credit limit, apply for a card from a different issuer.
It will still help your credit utilization rate, since your utilization rate is based on all your open lines of credit and balances.
So, an individual with $10,000 in credit who owes $5,000 will have a 50% credit utilization rate regardless of whether that $5,000 is on one card or spread across multiple cards.
Then, your credit report will reflect the primary cardholder’s on-time payments and (hopefully great) credit utilization rate.