How to Improve Your FICO Score Tip #3

Tip #3 Never Ever be Late - the Credit Bureaus are Watching

Never be more than 30 days late on a credit card payment, and never be late at all on a mortgage payment or a car payment. If you can only make one payment, pay your mortgage first! Followed by installment loans like your car payment, then your credit cards. When you have multiple payments of the same kind, (i.e. two car payments, five credit card payments), pay the one with the highest interest rate first. Even though nothing feels better paying off a small balance and seeing $0 due, you will save more money in the long run paying off the higher interest rate balances sooner rather than later. This in turn will leave you more money to pay off the small balances. Manage your credit report or the credit reporting agencies will manage you.