Saturday, December 4, 2010

Best way to increase your fico score

Factors contributing to someone's credit score...Image via Wikipedia

If you’re like most Americans then you understand the importance of increasing your Fico score. What most people don’t realize is how easy it is to actually increase . Some people choose to only use credit cards to get their Fico score up, but this isn’t a really good method because of how the credit bureaus look at credit card debt. A good way to get the same benefit of a credit card but not have that bad impression of your score, is to get a prepaid credit card.

Another great way to increase your Fico score is by decreasing your debt to credit ratio. You can do this by either increasing your limits or by paying down debt. Of course paying down debt is the best way to go, but most people don’t have this option . But if you really want to pay down debt then you will look at a few methods to help you out . The best option to help you increase your Fico score by paying off debt is to use a debt consolidation. These debt consolidation companies help out because they move all your debt and place it into one account. This helps out by giving you less balances and it sometimes lowers your payment and interest. When it lowers your payment that means you can pay the same amount as before and pay down the balance sooner .

If a debt consolidation isn’t what you’re looking for then a debt settlement would be great . With a debt settlement you can almost instantly reduce your debt by close to 50%. These are good for people who are having problems making the monthly payments, but are terrible for people who want to increase their credit score today, this method takes a couple months.

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