When asked, "Can FICO go up after fixing report?" I say absolutely!
And here's more good news. If you only raise your credit score by as little as 10 points, you could end up saving thousands of dollars in interest over the term of a mortgage.
Although it's important to realize it can't happen overnight, you could improve your FICO score by as much as 100 points in just six weeks.
That's enough to qualify you for a better loan with lower interest and points. Sounds worth the effort, don't you think?
Did you know nearly 80% of credit reports are incorrect and 25% of the errors are serious enough to deny you credit or penalize you with a higher interest rate? Therefore, the first thing you should do is go over your reports with a fine tooth comb.
Look for every mistake, no matter how small, and immediately contact the credit agencies in writing, giving them specific details of what you believe is wrong. They then have thirty days to respond and, if they agree, they'll correct your report.
If they don't agree, you still have the option of including a "letter of dispute" in your file.
FICO uses, among other factors, your payment history, how much you owe in relation to your credit limits and how long you've had your accounts to determine your score. Keeping these categories in mind, there are some simple things you can do to up your FICO.
Begin by paying all past due accounts, no matter how long overdue. Past due accounts reflect on your payment history and greatly lower your score.
Once your accounts are up to date, if you make a reasonable request, most creditors will be willing to remove from your records all mention of any late payments. If they do it, your score will go right up.
Just ask for what you want and take what you get.
Now that you're up to date, it's also a good time to request your creditors to increase your limits.
If you have a good history, they'll usually grant your request. And any increase in credit limit will improve your debt to credit ratio, which will, in turn, increase your FICO score.
But here's a warning. Make sure they don't pull a credit report. Recent inquiries lower your score and you don't want that to happen.
One final tip. How long you've had your accounts adds up to about 15% of your total FICO score, so never close inactive accounts.
You can actually add to your score by reactivating an account. Make a small purchase and pay it off on time. Even a little activity will add to your total score.
So, FICO can go up after fixing report? You bet it can!
And since lenders consider people with higher FICO scores to be more credit-worthy, it's absolutely in your best interest to do all you can to improve your score before you apply for new credit.