How to Improve Your Credit Score
Pro Tips

How to Improve Your Credit Score

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Having a high credit score – say, 750 or above – can help you get the best deals on everything from personal loans and insurance to mortgages. You can take specific measures to improve your credit score, but the key is to constantly track your expenses and limit your debts to make sure you are not living beyond your means.

How is My Credit Score Calculated?

Your credit score comes from several pieces of data in your credit report, so try to review the report regularly to make sure it's accurate, fair and complete. The top three credit reporting agencies – Experian, TransUnion and Equifax – regroup credit data pieces in five categories, which are allocated respective analytical weights: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and types of credit used (10%).

For example, the FICO Score Simulator allows you to estimate your credit score by running several scenarios, including initiatives that generally hurt your credit score, those that improve credit, and things that could damage your creditworthiness.For each scenario, you can simulate your credit score, and, for a small fee, the tool also allows you to simulate your best course of action, telling you the single most effective action you can take to improve your credit score and how high your new score might be.