A FICO score is a credit score developed by Fair Isaac & Co.  Credit scoring is a method of determining the likelihood that credit users will pay their bills.  A credit score attempts to condense a borrowers credit history into a single number.  FICO and the credit bureaus do not reveal how these scores are computed.  Credit scores consider a number of factors such as:

• Late payments
• The amount of time credit has been established
• The amount of credit used versus the amount of credit available
• Length of time at present residence
• Negative credit information such as bankruptcies, charge-offs, collections, etc.
• Each of the three credit bureaus--Experian, Transunion and Equifax--compute their own score so they can be different at each one.  Most lenders use only one of these, usually the middle one.

Ways to increase your score:

• Pay your bills on time
• Do not apply for credit frequently.  A large number of inquiries on your report lowers your score
• Reduce your credit card balances.  50% to 60% of the available credit is good.  More than that may lower your score.
• If you have limited credit, obtain additional credit.  Not having sufficient credit can negatively impact your score.  But remember not too many inquiries, so add credit slowly.

Check your report.  If you see an error, report it immediately.  You can do this online at the websites of the three credit bureaus:
Experian - www.experian.com
Equifax - www.equifax.com
Transunion - www.transunion.com