Final answer:
To raise your FICO score, pay bills on time, keep low credit utilization, protect personal information, and have a reliable borrowing history. Fairness in lending ensures personal characteristics don't impact credit decisions, and past mistakes don't permanently affect scores.
Step-by-step explanation:
How to Raise Your FICO Score
To improve your FICO score, it's essential to consistently pay all of your bills on time, which demonstrates your reliability as a borrower. In addition, using a small percentage of the credit available to you is wise; this is known as your credit utilization ratio and keeping it low can show that you do not overly depend on credit. These strategies are foundational for building a good credit score.
Another aspect of credit scores is fairness in credit decisions. Your credit score is determined by your past and present financial behavior, not personal characteristics like race, gender, or religion. Hence, maintaining a good score is essential. But remember, your score isn't permanently damaged by past mistakes; it can be improved over time with consistent responsible behavior.
Moreover, when you're dealing with credit, it's crucial to protect your personal information. This includes monitoring your credit history for any red flags, safeguarding your credit and debit cards, and making sure that your personal data is secure.
Lastly, if you're looking to secure a loan, being transparent with banks and showing evidence of a reliable borrowing history can help reassure them. If you have an imperfect credit history, demonstrating increased savings or stable investment income can also serve to bolster your trustworthiness.