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#1
Just curious about FICO score and how to improve on it. I'm trying very hard to up my score to a respectable level to better my odds of getting better rates during these "trying" times.
Currently my score is well below that of the median average of 725 but in the mid- 600, thanks much in part to mistakes made in my 20s. I've managed to bring it up and from just a year ago, it's risen up quite nicely. However not being satisfied, I'm wondering of better ways to improve on it.
I realize buying a new car and a consistent car payment would help a lot, but my '99 Acura has been trouble-free so I don't see or want the need to take this route.
Currently I'm just using 2 credit cards with good line of credits so I'm not looking for more. On one card I'm paying the balance off full monthly, the other I'm keeping somewhat a medium balance. I'm hearing people tell me that by paying the balance in full, I'm actually doing a disservice to myself. The argument is that it will show to the credit bureaus that a $0 balance would reflect as if I'm not even using the card at all. I think it's ludicrous but worth considering. Friends and coworkers suggest I keep my accounts with a small balance. Their argument is that this will reflect well as I'm not "maxing" out my credit lines.
I intend to follow this pattern of keeping one card paid off completely each billing cycle and the other a small to medium balances. Should I stay the course or go ahead and pay them both off consistently? Of course by doing this I would be saving myself interest charges I realize, but I don't mind taking that hit if it'll improve my FICO score.
Suggestions from you financial gurus out there?
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