
Internal backflips are some kind of wonderful! On a whim, I checked my FICO scores earlier this morning and discovered that one score has jumped from 680 to 712. I’m so filled with gratitude, I know that 800 isn’t far away!! I’ll have to update the Fiscally Fab portion sometime this week or perhaps even this morning!
I also came across an article of interest on yahoo several days back and intended to post but couldn’t find the time (primarily because I’ve been so busy trying to knock off my 101 in 1001 goals, they’ve become a priority for 2010).
A synthesized version of the article can be found below; find the full one here.
5 New Rules for a Healthy Credit Score
The rules that credit-card companies have to live by changed dramatically with the enactment of new regulations last month. Now, some of the rules for consumers striving to maintain good credit are changing, too.
For the most part, card holders would still do well to pay on time, keep their balances low and refrain from applying for too many credit cards at once. But some of the old tenets may not always hold up, as credit-card companies continue to adapt to the new environment and look for ways to run their for-profit businesses.
Case in point: Many issuers introduced annual or inactivity fees in the weeks leading to or immediately after the Credit Card Accountability, Responsibility and Disclosure Act went into effect. “Now folks have to decide — do they want this card badly enough to pay the fee, or do they close it,” says Barry Paperno, the consumer operations manager at FICO (FICO). It’s a question of more than just losing a credit line. Closing a credit card can have a big impact on one’s credit score. That is, unless you do some groundwork in advance.
With the help of some easy — if often counterintuitive — steps, you can improve and retain a healthy credit score even in today’s fast-changing credit environment. Here are five:
- Open More Credit Cards
- Max Out (Some of) Your Credit Cards
- Don’t Ask for a Lower APR
- Closed a Card? Don’t Pay It Off
- Mix Business and Personal
I’m aware that these steps are not only counter-intuitive but, alarmingly, appear to be downright brutal. I encourage you to read the entire article before forming an opinion.