Improving your FICO Scores

Improving your FICO Scores

For a long time, longer than I care to remember, FICO Scores aka credit scores have been an super secret formula where only the credit reporting bureaus (Experian, Transunion, Equifax) knew how they worked.  This, of course, is because they are the ones who created the system.  For too long, we all wondered how to improve our credit scores while mortgage professionals tripped over themselves trying to provide a homebuyer a logical answer.    However, it still remains a complex formula based on factors that we likely will never know how they actually work. 

Getting and maintaining good credit isn't rocket science, we just need to pay our bills on time, keep our balances low and sparingly take on new debt.


FICO's information demonstrates that a bankruptcy tends to do the most damage to a person's scores.  I can damage scores up to 240 points.

Credit Card/ Revolving Debt

Those with good or excellent credit - aka Prime Borrowers - put their scores at risk with a simple mistake. For example, someone with an average score of 680 who might make a payment 30 days late can experience a 60 to 80 point drop in their score.  However, someone with an excellent score of 780 - that same late payment can plummet their score by 90 to 100 points. (Read More)

Comment balloon 1 commentTed Canto • January 21 2010 12:48AM


Ted that is a great blog.  It is amazing how one late payment can kill a credit score.  In this day and age we have to protect our score to do any kind of business at all.  This score affects everything from interest on a loan to how much you pay for insurance and even whether you can get some jobs or not

Posted by Wayne Golliday (Mobile Home Sales of Florida LLC) over 10 years ago

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