What Do I Need To Do To Have A 720 FICO Credit Score

If you don't already have a 720 FICO credit score you are going to need to change your financial life.

The Fair Isaac, which is where the FICO credit score name is derived from, compiles three scores from the major credit bureaus: Equifax, Experian, and Transunion. Your FICO credit score actually can range from 350 to 850(the highest credit score I have seen was 825). If you can get I FICO credit score over 800, you are as good as gold. Especially today the higher the better. I have seen mortgage lenders reserving better rates for consumers with a FICO credit score of 760 or better. But if you are not ready to buy a home in prime time housing market, don't sweat it. Just concentrate at getting your score to 720. Most creditors will be willing to extend you credit.

Here is what you need to do to get that score up:

- Always pay your bills on Time. This portion accounts for 35% of your FICO credit score. If you end late on your bills. This means not only your credit card payments, but loans of any kind. Your FICO credit score will go down. Just paying at least the minimum will help your score.

- Pay down what your debt. How much you owe compared to your available credit accounts for 30% of your FICO credit score.We have discussed this before. The less you owe on your credit cards the better you look to credit card companies and other lenders.

-Keep credit cards that have a long credit history. This accounts for 15% of your FICO credit score. The longer you have your credit cards, the more data FICO has to determine your credit risk. Don't cancel your credit cards. Even if they are paid off.

-Limit your applying for credit. New credit accounts for 10% of your FICO credit score. The more you apply for credit the more nervous you make lenders. If you apply for multiple forms of credit at the same time, it will bring down your credit score.

- Have different types of credit. This accounts for 10% of your FICO credit score. Lenders like to see a few different types of credit. It shows them you are able to handle different scenarios with debt. So having a credit card and a car loan is actually better than having just credit cards.