Your credit score changes due to updates to your credit file which changes based on account activity such as balance changes or additions to your credit file (i.e. new accounts or deletion of older negative accounts more than 7 or 10 years old). As a result, you may see a difference in your score from one month to the next. If you have bad credit or a low credit score here are 9 things you can do to boost your FICO credit score:
- Keep total amount of debt owed low. Keep credit card balances at 20% or less of the credit limit.
- New Accounts. Number of new accounts opened. Don’t open more than one new account every 2 years. If you are applying for a mortgage loan or credit card shop within a 2 week period, the inquiries will count as one inquiry (versus multiple inquiries).
- Denied. Don’t apply for credit if you know you will get denied the inquiry will temporarily lower your credit score.
- Mix of accounts. You need a mix of revolving (credit card) and installment (loan) accounts to boost your credit score.
- Payment history. You will need a payment history of at least 7 years or more with no late payments to have excellent credit. You will need a payment history of at least 3-5 years with no late payments to have good credit.
- Length of credit history. You will need a credit history of 2 years or more to establish a decent credit history profile.