• Improve your FICO scorecredit 3d sign image by onlinebewerbung.de from Fotolia.com
  
  Foreclosures, repossession, bankruptcy and poor credit habits can bring on a lower credit rating. Bad credit doesn't only happen to irresponsible people. Loss of employment or illness can prevent you from working, which in turn makes it difficult for you to keep up with mortgage payments, car payments and credit card bills. A few months of delinquencies or late payments can destroy your credit rating. But even if you fall upon hard times, there are ways to improve your FICO score.
  
  

Payments

• Forgetting due dates or losing credit card statements aren't excuses to miss or skip your credit card payments. This poor credit habit can have a negative impact on your credit score. But to improve a low score and demonstrate the ability to management debt well, you've got to get into a routine of sending payments to creditors on time each month. Timely payments play a huge role in credit scoring, and this habit alone is enough to help you maintain a good credit rating.
  
  

Debt

• Credit cards are convenient, especially during an emergency when cash is low. But if you don't pay off your balances, you run the risk of accumulating a huge debt, which isn't always easy to repay. High credit card balances lower your credit score, and high debts can make it difficult to obtain new lines of credit such as an auto loan or mortgage loan. Pay down your balances to improve your FICO score and gain control of your finances. Make higher payments until the balance disappears and limit credit card use. Ask yourself, can I afford to pay off the charge by the end of the month? If you answer no, do not make the purchase.
  
  

Credit Report

• Analyzing your credit file at least once a year to help improve your FICO score. Many people become victims of identity theft every year. But sadly, they don't realize there's a problem until they're denied a line of credit. Be proactive with your credit rating and know the contents of your credit report. Order a report from Annual Credit Report. After thoroughly checking each creditor and checking for accuracy, report or dispute mistakes to the credit bureaus. Credit reports list contact information for the credit bureaus and the reporting creditors.