Karl Eggerss was interviewed on CBS discussing easy ways to improve your FICO score.
Sharon Ko: It’s a three digit number that can help you get a reasonable loan for a home or car. Let’s take a look at the Fair Isaac Corporation Score or FICO score. It’s based on five areas, your payment history, amounts owed, new credit, length of credit history and credit mix. Now, if you’re starting from scratch, this is one way to get ahead of the game.
Karl Eggerss: Become an authorized signature on somebody else’s credit card. So, even if you don’t use the credit card, you may get that credit applied to you that looks like you have more credit.
Sharon Ko: These are the credit score ranges. The lower the number, the higher the risk to lenders. A financial advisor says one of the best ways to improve that score fast is to make payments to your credit card often.
Karl Eggerss: In fact, you may even pay them more frequently than the monthly cycle they’re on. You want to pay them off, have the balance be zero, but a lot of people go and close those credit cards. Don’t do that. If you leave that credit available, it actually will improve your FICO score.
Sharon Ko: Lastly, it is always a good idea to check your credit history.
Karl Eggerss: Make sure there’s no errors on there. There could be something in the past that was a hundred dollar bill that you did pay off. They still have it outstanding on your credit even though you’ve paid off that loan or that piece of credit. It’s still sitting out there.
Sharon Ko: For a link to check your credit score report head over to kens5.com.