A person can read lot of suggestions on how to increase and look after a FICO score. Some of it will be helpful and some won’t be. The reason for much of suggestions not being helpful is for the reason of the common misconceptions about a FICO score.
The first fallacy is an individual should close troubled accounts to get a better FICO score. This fallacy is rooted with the thought if the account is closed it won’t be be taken into the formula. The truth is the credit card is closed but your payment history to that card will be on your credit report. With this card closed your credit utilization will go up. This is the second largest component the FICO score calculation, 30. Not closing this line of credit is better.
The second fallacy that an individual might be told is looking for credit damages a FICO score. This fallacy actually can be true and false and it is contingent on the type of credit wanted. an individual ins’t allowed to look when it comes to a credit card. A person is allowed to look for home loans and car loans.
One more common fallacy is that an individual could ask to lessen limits on the accounts to increase a score. This ought to be not done. As suggested before an individual’s credit utilization stands for 30 of a score and lower the available credit will create a picture of having debt. This will not have the result of aiding and could lower it.
These are only a few ways and there are several more.