Improve Your credit report and FICO® Score

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With the economic crisis having decimated the budgets of millions of families, many are wondering if it’s possible to improve your credit report and FICO® score.  And while some have seen their credit scores decline as they fell behind with mortgage payments and credit card bills, the damages can be repaired.  Yes, you can improve your credit report and FICO® score, but it’s not as simple as some of the scam artists would have you believe.


The first step is to get copies of your credit report from the major credit reporting agencies; and the credit reporting agencies are mandated to provide you with a free copy of your report annually.  This is not one of the so-called “free” reports you see advertised on TV—those are only free if you subscribe to their service; and that’s not free. Your free credit reports are only available at:  And while you’re checking you may want to purchase a copy of your FICO® score.  It will be offered to you by when you order your report from Equifax.


The FICO® score is the only legitimate credit score.  Other scores offered by the various credit bureaus are inconsistent with the FICO® score and are generally not considered by lenders.  Don’t waste time or money with the scores offered by the other credit bureaus; pay for the same score lenders use.


The three major credit reporting agencies are:



P.O. Box 740123

Atlanta, GA 30374




475 Anton Blvd.

Costa Mesa, CA 92626



Trans Union

P.O. Box 7000

North Olmstead, OH 44070



After reviewing your credit reports and correcting any errors you find, it’s time to begin the steps that will improve your credit score.  A great place to get started is with, a website that offers FREE money management software.  With tools that allow users to track their spending, the website connects to thousands of financial institutions.  Offering a wealth of services and options, Mint will help you begin learning how to live more frugally.  You may also want to check out, another site that I’ve found helpful.


Now you’re ready to follow the simple steps of commitment, creativity, planning and patience.


COMMITMENT: Restoring your credit requires a commitment to your plan and to your monthly budget.  Don’t be tempted by purchases that will get you “off track.”  Stick to your plan regardless of the temptations that arise.


CREATIVITY: Look for ways creative ways to lower your monthly expenses such as: brown-bagging, car-pooling, getting rid of cable TV, home phones or other items that are not necessities.  Visit websites such as for additional money saving ideas. 


PLANNING: Improving your credit means that you have a plan and that you follow it.  Part of your plan is a budget that requires constant monitoring and updating.  And when you become aware of future needs, plan those expenditures so they don’t disrupt your budget. 


PATIENCE: Restoring your credit takes time.  Depending upon the amount of damage done, it could be a couple of years or more before you begin to see a significant improvement.  But don’t fall for those scam artists that advertise immediate restoration of credit; it can’t be done—at least not legally.  Unless there are gross errors on your credit report, restoring it won’t happen overnight.


Additional Credit Tips:

Limit your requests for credit.  If you are just starting out and attempting to establish credit for the first time, don't open several new accounts in rapid succession.  New accounts lower your average account age, which can significantly impact your score, especially if your credit history is slim.  Additionally, opening several accounts within a short time makes you appear as a high risk.

Avoid multiple inquiries into your credit history.  If you are shopping for the best rate on for a particular purchase (furniture, appliances, auto or home mortgage) try to do your rate shopping within a short time period.  Credit scores are not generally affected by multiple inquiries for the same purpose if they occur within a short period. 


Always pay your bills on time.  I recommend using your banks’ bill paying service—they’re much less likely to miss payments, and if they do, you’ll have a record of ordering the payment on time.   Make sure your bank offers the service as part of your checking account.  There should be no extra charge for bill pay; and you shouldn’t really pay for normal checking either.  If your bank doesn’t offer a free checking that meets your needs, look at the offerings from competitors.


Pay off high interest credit cards first by applying as much as possible to the balance while paying minimums on other cards.

Maintain the lowest possible balances on credit cards or other “revolving credit” accounts.  A high debt to credit limit will lower your credit score.

Once a credit card balance is paid in full, don’t close the account; keeping it open actually improves your score.  However, don’t apply for additional cards just to increase your available credit; opening multiple accounts could reduce your score.  


For those who are overwhelmed by debts and so far underwater that budgeting seems impossible, check with the National Foundation for Credit Counseling (, a non-profit agency providing financial counseling throughout the country.  They can provide an honest analysis of your financial situation and will help you get back on track.  But, avoid those services that advertise debt consolidation, many are scams that will only leave you in worse financial shape.


Finally, the best advice for improving your credit is to manage your use of credit responsibly.  Use credit only when necessary and pay all your bills on time.  And once you’re back on track, begin a program of regular savings.  Loan officers love to see a program of regular savings for it demonstrates stability and a commitment to your financial future.



Re-Bloggged 6 times:

Re-Blogged By Re-Blogged At
  1. Jeanne & Ralph Janisch ABR CRS Brokers 06/29/2011 11:04 PM
  2. Lina Robertson Jones 06/29/2011 11:46 PM
  3. Lanre Folayan 06/29/2011 11:47 PM
  4. Steve Davis 06/30/2011 12:50 AM
  5. Richie Alan Naggar Author PEARLS SERIES of books 06/30/2011 10:14 AM
  6. Lyn Sims 06/30/2011 01:02 PM
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Gene Mundt
Mortgage Lender - Chicago/Chicagoland Mortgages

John:  Kudos to you on offering this information and roadmap to better credit.  I applaud that you suggest taking charge of your own financial destiny as well.  This is the same suggestion I make when someone asks me about working with a credit-improvement company.  People CAN do this on their own and avoid being charged for it.  I have found that typically the results are poor (if any) from those "helpful" credit-improvement businesses anyway.  The recommendations you make here are solid and point out that there is FREE help to be had.  They just need to inquire to find it in their area. I hope many read this and follow its' suggestions ...


June 30, 2011 10:56 AM
David A. Weaver
Purchase - Refi - Conv - FHA - VA - USDA - HARP
Bank of Arizona, N. A.

John,  Great advice, I find that today I spend more time counseling prospects on just this topic than I used to.  Mind if I print your blog out and pass it along.  Well and simply stated info.  It just might get the message across.  Thanks for the post.

June 30, 2011 12:09 PM
Ron Tissier
Atlanta Luxury Real Estate Sales & Consulting
Chapman Hall Realtors/Atlanta Luxury Home Sales & Consulting

All good advice John!  Let me add that the only legit site to get true FICO scores is  You can get your "real" FICO scores here; the ones that lenders use, along with current credit reports from Equifax and TransUnion.  For some reason, Experian no longer provides credit reports online.  In addition, everyone should check their credit reports at least once a year for mistakes and errors.  You'll be amazed at some of the crazy stuff you find that doesn't belong to you.   

June 30, 2011 12:13 PM
Lyn Sims
Schaumburg Homes
RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago

Excellent advice.   There was someone here that suggested getting your free report from each company free every 4 months on a rotation basis.  That way you get to keep your credit under watch thruout the year.

June 30, 2011 12:59 PM
John Mulkey
Housing Guru

Richie - Thanks for the comments and I hope you enjoy the book.

Gene - Glad to offer what I've discovered.

David - Feel free to pass the info along to anyone who needs it.

Ron - I agree.

Lyn - Yes, checking the 3 credit reporting agencies on a rotating basis allows you to keep better informed on your credit without paying for the info.  Good advice.

June 30, 2011 04:48 PM
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John Mulkey

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