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What Can Consumers Do to Raise Their Credit Scores?

What Can Consumers Do to Raise Their Credit Scores?

BoostMyScore Unveils the Secret that Made Them a Success.

Denver, CO – 10/26/09 – Fair Isaac Corporation – the company who determines your credit score and sells it to banks – recently released a new credit scoring model called FICO® 08. Many American consumers are wondering how the changes will affect them, how soon those changes will take place, and how to raise their new credit scores. A Denver based credit advisory firm, BoostMyScore, has been working diligently to answer the questions not being revealed by the score’s makers.

Firstly, while this new scoring model was released a few months ago, it won’t likely affect any of us for several years. It will take time for it to permeate the entire financial industry in America. Every bank, car dealership, credit card issuer, and mortgage company will be on the hook for a costly “upgrade”, should they choose to use FICO® 08. BoostMyScore, states, “Simply because Microsoft® just released Windows 7® doesn’t mean that everyone in America is going to buy and install it tomorrow morning.” “In fact, a large majority of banks and lending institutions are still using the FICO Classic® model, which is nearly a decade old.”

was released a few months ago, it won’t likely affect any of us for several years. It will take time for it to permeate the entire financial industry in America. Every bank, car dealership, credit card issuer, and mortgage company will be on the hook for a costly “upgrade”, should they choose to use FICO® 08. BoostMyScore, states, “Simply because Microsoft® just released Windows 7® doesn’t mean that everyone in America is going to buy and install it tomorrow morning.” “In fact, a large majority of banks and lending institutions are still using the FICO Classic® model, which is nearly a decade old.”

However, once FICO® 08 is in effect, credit score declines are predicted nationwide. While leniency will be practiced on small items, like a missed payment, most people will see a reduction in their score as a result of the tighter restrictions against those of us who owe too much money on our credit cards.

So, how do you boost your credit score now and in the future? The answer is simpler than you may think, and it is far easier than being a good credit steward and merely paying your bills on time. While that is certainly the best method to practice, it may not be enough for you to achieve the loan you need.

One of the original intentions behind the new credit score model was an attempt to eliminate an effective and legal credit score boosting strategy called “piggybacking”.

Piggybacking is when one person with good credit rents out an Authorized User spot on their credit card to another person for a small fee. Once the renter is added as an AU, the account history – payments, limit, and balance – for the cardholder’s account appears in the renter’s credit file within a few weeks, thereby immediately affecting the renter’s credit score.

Fair Isaac Corporation permanently approved the piggybacking benefit in the FICO 08 model in July 2008 during a Congressional Subcommittee summit on Credit Education. The confirmation of the piggybacking benefit followed legal concerns presented by BoostMyScore to the Federal Reserve and the Federal Trade Commission earlier that year.

In the end, pay your bills on time, every time. And if you need a quick boost to your credit score, piggybacking credit tradelines looks like a good option.

Bill Airy

About the Author:

Bill Airy is the CEO and Founder of BoostMyScore. For over 12 years he has helped American consumers get a second chance at a better financial life by helping them to improve their credit score. He regularly publishes helpful content on this Blog to educate others about Credit Scores and best practices when trying to improve them.

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BoostMyScore Team