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FICO challenges credit card holders to raise their scores

Feb 15, 2011 Brian Bradley

Consumers nationwide are facing the uncertain economic future as they wrestle with their consumer credit scores and the impact those figures have on their earning power. In response, FICO, the leader in credit scoring, has issued a challenge to credit card holders to improve their numbers. FICO and the Consumer Federation of America are challenging credit card holders to raise their scores by 30 points. By doing so, says the CFA, consumers could avoid a cumulative charge of $28 billion to $30 billion in finance charges. The credit reporting giant states that by increasing one's score by 30 points, cardholders will receive greater advantages when it comes to mortgage rates, car loans, credit card interest rates and other types of credit management. To meet goals and lower one's score, FICO suggests that consumers avoid late payments on all credit cards, maintain a credit card balance 10 percent or below one's credit line and properly manage multiple types of loans. According to Experian, the average American credit score is 736.