How Do I Raise A 640 FICO Score To Above 700?
My credit score is around 640 and I want to raise it to over 700. I only have 4 lines of credit right now, and I want to find out how do I make my credit score even better than it is? If you are experienced with credit, can you please notify me on the steps I need to take? Thank you. 
I would suggest you get your balances down to 5% of the credit limit but no lower.
It will take approx 4 to 6 weeks to show up on your FICO
I have seen this help EVERY single person who has done it. There is even a chart over on www.creditboard.com which shows that between 5 and 7% of credit limit seems to be the VERY best for the highest FICO possible.
And before you start doing anything else be sure to read all through that board. Doing something you THINK will raise your FICO might astually make it go lower.
Michael
Funny you should ask. I was just researching this on the internet. The FTC (Federal Trace Commission) has a good site. Check it out. Basically they say that you can raise it by establishing a good payment history, by not having a disproportionate amount of debt to income, by not having too many credit cards -- even cards with no balances can send a signal that you have the potential to get in debt. Oh and yeah, if you have a college degree , stay on the job a while, don't move around from house to house, your score increases. First thing I'd do is get the long version of my credit report and examine it closely. If there is any thing on there worth disputing, do so. Clean it up.
I pulled my credit earlier this year and found some mess from a credit card I have. They were in error, and their error caused my score to drop significantly. I wrote a hot letter, they apologized and sent a correction to the bureaus. My score is now back up to where it was when the darn credit card company first approved me. Also, that darn drop in my score caused me to miss out on a lower interest loan.
And raising it it won't happen overnight.
Good luck.
Everything you wanted to know, and probably some stuff you didn't:
http://www.creditinfocenter.com/creditreports/scoring/
flacorps made my answer he is right on. Damn.
Really not much to add but you can always play the banking game for additional points.
You borrow unsecured a 90 day from the bank. Pay it off in 70 days. Roll this three times and make sure the Bank is supportive, then on query they submit their experience with you and up goes the score.
Also on your 1003 or whatever form you are using for financial statement. You can load the securities held with non listed stocks, Partnership interests in LLP's and the personal note you hold on some relative who makes great payments. these are pretty much the standards.
Hope it is helpful Lucius
Quote:
On 2003-12-21 17:39, MrMike wrote:
I would suggest you get your balances down to 5% of the credit limit but no lower.
It will take approx 4 to 6 weeks to show up on your FICO
I have seen this help EVERY single person who has done it. There is even a chart over on http://www.creditboard.com which shows that between 5 and 7% of credit limit seems to be the VERY best for the highest FICO possible.
And before you start doing anything else be sure to read all through that board. Doing something you THINK will raise your FICO might astually make it go lower.
Michael
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I can't pull up www.creditboard.com. Are you sure that is the correct web address Michael?
Sorry Buddy it is creditboards.com
Sorry Buddy it is creditboards.com
If you have high utilization, a quick way to change it is to have a friend or family member add you as authorized user on a credit card - one they've had a long time, that has perfect payment history, and no or very little balance. That will instantly increase your overall available credit, and therefore lower your utilization. They don't have to let you actually use the card.
As far as debt to income - a lender may look at that, but it isn't part of your score. There is no income component to your credit report, only debt-to limit ratio. So debt to income is not a factor in your actual credit (FICO) score.
I'd like to add to Lufos' method:
If you go to a bank and can't get an unsecured loan for 90 days, try buying a CD and use it as collateral and pay on time.
Be certain to build rapport with your banker and ask her to report the good stuff.
simple: Pay your bills on time!!!!!!!!
Credit score reflect two things: credit history and credit depth. Actually credit depth is more important than credit history.
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While were on the subject- my wife and i have several store credit cards with zero balances- should these be canceled or kept open and not used?
I have gotten conflicting reports from several mtg brokers.
Thanks-john
Most banks I know of have all credit related stuff handled by their central office based elsewhere. How can you then build a relationship that will enhace your credit with them under this circumstances? By the way, does any one know of a local bank in NYC with which I can build such a rapport???
You can learn about banks in your area on http://www.fdic.gov/. Also, if you listen to daytime talk radio, the hungriest small bank will be advertising with shows like Rush Limbaugh, and talking about how small and friendly they are.
Quote:
On 2004-01-27 13:36, ponjohn wrote:
While were on the subject- my wife and i have several store credit cards with zero balances- should these be canceled or kept open and not used?
I have gotten conflicting reports from several mtg brokers.
Thanks-john
John
Your credit file should show both depth ( how long you have had an account opened)
and history (how many times you were late)
every application is graded and one question is on every form (an internal form) Credit, 2 years, over 2 years or none. You get more points for credit over two years old even if zero balance.
Lori
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