We will go over how you can get your very own ‘my free fico score’ at no charge. But first, let’s go over how you can get rid of negatives on your credit score and how to get a better credit score and report.
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My Free Fico Score
Removing negatives from your credit score and your credit report may be a long process, but it doesn’t have to be. If you have negatives on your credit report which definitely are not yours, you need to fight it to get it taken off your credit report. If you don’t, it will take 7 years for the negatives on your credit report to be removed. Negatives actually stay on your credit report for 7 years and don’t start dropping off until 3 to 4 years after you get the negative. That means you will be stuck with negatives on your credit report that will drop your score for 3 to 4 years and will continue to affect you for 7 years.
One way to improve your credit score is to slowly improving your credit mix. Having some sort of installment loan where you are paying a fixed payment for a fixed duration like a car loan or mortgage will help your credit score. But do not get a loan only for the sake of improving your credit score. You will be paying interest and wasting money when you don’t have to be.
Also getting a credit card with a reasonable credit limit from a non-subprime issuer will help your credit score. But at the same time, don’t apply for more than one new credit card at a time. Too many inquiries will lower your credit score.
If you have erroneous information on your credit report, you need to be sure to dispute that information right away. The longer you wait, the more difficult it is to get it removed. Also the longer it stays on your credit report, the more it will drop your score. It’s good to check to see if you have any erroneous accounts on your credit report at least once a month. It is completely free to do so. You might as well check your credit report.
My Free Fico Score – Improving Your Score
The next most important thing to improve your credit score is your credit utilization. Your credit utilization is how much debt you owe divided by your total credit limit. It is actually a 3 part factor:
1. Credit utilization per account or per credit card.
This is based on your credit utilization per account you have open. For example, if you have a balance of $6,000 on your credit card and it has a credit limit of $10,000, you have a credit utilization of 60%. This is too high. A low credit utilization is good, anything over 30% is bad.
2. Overall utilization of all accounts.
This is based on your credit utilization of all your accounts by the type of account. This can be separated by a revolving credit account, installment loan account, or mortgage loan account. Note that the revolving credit account is worth more than all the other accounts. Again, keep your credit utilization for all accounts under 30%.
3. The percentage of accounts you have open with a balance.
The last ticket item is the percentage of open accounts with a balance. Some have argued that you want to keep no more than 3 accounts with a balance, which is a good number to shoot for. But keeping it within the same rule of under 30% as a percentage is a good idea as well.
Make sure you get your very own “My Free Fico Score” for absolutely free before you go.
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