If your credit score is below 600, creditors view you as a high risk, when it comes to extending you a line of credit, to purchase a home, car, etc. The importance of raising your FICO score, does not only center on getting loans and credit cards, but also on your ability to get a good job. Increasingly, employers are checking the credit history of job applicants.
Its a matter of trust. A person with an enormous amount of debt or a person, who displays signs of not being responsible with their credit - may not be a good employee.
Here are 6 easy steps to raising your FICO score:
1. The first step to raising your FICO score, is to understand how bad the situation is. In other words, what is your FICO score. You can take advantage of the free government credit report. You are entitled to three free credit reports every year from each of the National Credit Reporting Bureaus (Equifax, TransUnion and Experian).
2. Understand your credit report. Each of the National Credit Bureaus: Equifax, Experian, TransUnion have different credit reporting formats. In the past, the reports were very cyptic but nowadays the format are to read.