With credit tightening, having a high FICO score is more important than ever. Below is a list of five common practices that can cause your FICO score to go down.
1. Late Payments - Payments make up 35% of your credit score. Being over 30 days late can lower your credit score by a whopping 100 pts! Not to mention late fees and other charges! Be sure to pay your bills on time.
2. High Credit Card Balance - If you must keep a balance on your credit card, aim to keep it no higher than 35% of the limit.
3. Closing Credit Cards - How can this be detrimental to your credit score? If you close a credit card account in which you have a history of timely payments, you are in effect erasing your good credit history.
4. Too Many In-Store Cards - Opening several accounts in succession, even though you vow to pay them off, sends red flags to credit agencies.
5. Fines That Add Up - Remember those overdue library books? Maybe you forgot to return them. Maybe you just returned them and did not pay the fine? Some public libraries are enlisting the help of collection agencies to recoup the money either for the price of the books or to recoup the fines- or both. This can affect your credit score. Ditto for outstanding parking tickets!
Addressing these five issues will simplify your financial life and put you on the road to a higher credit score.
About this Author
Mitch Korolewicz, MBA is a Money Coach and a Professor of Finance at St. Gregory's University. For more information on the services he provides visit his website at http://www.okmoneycoach.com
Article Source: http://EzineArticles.com/?expert=Mitch_Korolewicz
