The article highlights five strategic financial hacks to improve your FICO credit score. First, it suggests requesting higher credit limits to lower your credit utilization ratio, thereby making your debt appear smaller. Keeping credit utilization below 7 percent is recommended, with advice to avoid closing unused credit accounts to maintain a favorable ratio. Additionally, consolidating credit card debt with a personal loan at a lower interest rate is proposed as a method to boost your score. Lastly, using a retirement savings plan to lower credit utilization is mentioned, although it’s cautioned that this approach requires careful management of reduced income due to paycheck deductions.
In summary, the article emphasizes practical strategies such as managing credit limits, maintaining a low credit utilization ratio, and considering debt consolidation to positively impact your FICO credit score. While these tactics offer potential benefits, it’s important to assess individual financial circumstances and exercise caution when implementing these strategies to avoid unintended consequences. Read more