Improving Your Credit Score Part 2 – Tweak Your FICOs by 20 Points Quickly

December 31, 2009

Credit Basics

Improving Your Credit Score Part 2 – Tweak Your FICOs by 20 Points Quickly

You can increase your FICO scores by tweaking your credit even if there’s nothing incorrect on it.  By cleaning up a few items most people don’t even think of, you can tweak your FICOs by 10-20 points.   First obtain your free credit report – you are entitled to one free credit report per year from each of the three credit reporting agencies (3 total per year):

  1. Free reports @ (or 877-322-8228)
  2. Free FICOs @

Once you have obtained your credit reports, you can dispute them on-line, or by mail, and request that the following items be corrected.  Even though each one is only worth a few points, those points could add up and push you over that 720 FICO credit score  limit you need to get the best interest rates:

  • Addresses – Remove any that are over 5 years old (contact credit reporting agencies to correct)
  • Names – Correct names on the report (contact your creditors to correct and report) FICO credit score, improving your credit score8118_wpm_hires
  • Employers – List only the last two; remove the rest (contact contact credit reporting agencies to correct)

Next, you can start improving your credit score by following the rules described below:

  • Get 2 revolving and 3 installment accounts; use 80/20 rule.  80/20 rule: Pay down 80 % of the balance, leave 20% to carry interest for 3-5 months out of the year
  • Carry no more than 30% balance of the available credit on each credit card
  • Call and ask for credit limits to be increased & get more available credit, but don’t use it up.  The more available credit you have, the better your FICO credit score
  • For new accounts (& mortgages), FICO credit score drops for about 90 days, then goes back up once the history is re-established
  • Ask to be added as an authorized user to someone’s account with a good standing if your credit score is damaged – their good credit carries over to yours for that one credit card, which will help you greatly in improving your credit score
  • Challenge every bad piece of credit report – accurate or not. If the company that reports the derogatory credit does not respond within 30 days, the credit reporting agency is required to remove it from your credit report

See next blog in the this series, for info on how to contact the three credit reporting agencies on-line, by phone or mail.

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3 Responses to “Improving Your Credit Score Part 2 – Tweak Your FICOs by 20 Points Quickly”

  1. Monica Says:

    Thank you… I was waiting for part 2. I specially appreciate the 80/20 rule. Happy New Year!
    .-= Monica´s last blog ..Mike Ballantyne in Action! =-.

  2. Donna Dalton Says:

    Any idea how long credit inquiries stay on a credit report and how much they damage the score? I applied for car loans over the Internet and now about 15 credit inquiries show up! And my sister applied for a home mortgage through website that goes and polls loans, and she ended up with a load of inquiries also.
    .-= Donna Dalton´s last blog ..To Do Software to Help You Get Things Done =-.

  3. Delia Says:

    Great post! Having great credit these days is as important as its ever been these days! I love your website and keep up the good work!

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