Saturday , 13 July 2024

3 Tricks to Repair Your Credit (FICO) Score

Anyone who has bad credit will want to find some tips to improve credit score problems so they can get approved for loans, get good insurance rates. This article provides some simple but effective tips that can help you repair your credit yourself. Words: 442

In further edited excerpts from his original article* Darin Sewell ( goes on to say:

Trick #1
The easiest way to bump your FICO score up is to reduce your limit to balance ratios on your credit accounts. The magic number is 50%, this means that if you have a $5000 limit you want no more then $2500 on your balance. Anytime you go over this ratio your scores will start to drop.

The fastest way to reduce your balance to limit ratio is to either pay down your balance or call the lender and ask them to give you a credit line increase. If neither of these work you can also spread the balances around to other cards keeping all the balance to limit ratios under 50%.

Trick #2
Another old credit repair trick that still works a little bit but it is not as powerful as it used to be is the piggyback method. To do this trick you need to find a close friend or relative that has great credit and a credit account that has a low balance to limit ratio. Have them add you as an authorized user, this will help put a positive history onto your credit report.

Just remember that if your friend or family member all of the sudden starts paying bad it can reflect on your credit as well so be very sure of the person you ask to help you with this method to improve credit score.

Trick #3
Probably the best trick and one that still works great is to use a secured credit card to give you some quick positive history on your credit report. A secured credit works because it reports just like a regular credit card but is much easier to get. Basically all you need is a job and the ability to repay the card.

To ensure they do not lose money, the lender holds a cash deposit that is equal to your credit limit in an account. If you default on the account the lender can take the amount you owe from the deposit but if you cancel the account or get upgraded to a unsecured account the deposit is refundable.

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[Editor’s Note: The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.]