Credit Scores – How Much Can They Rise?


Raising Your Credit Scores

Credit scores:  It is so incredibly important for a person’s financial well-being. So why is there is a surprising amount of mystery surrounding the FICO method of evaluating credit scores? According to FICO itself, after examining its own data, they revealed some solid information.  This can help explain how much a person could expect their credit score to rise after a delinquency falls off of their report.
What did they find? After one delinquency was removed from an account holder there was a rise. Over a three month period, it seems that it typically resulted in a 14-point rise in their credit score. A removal of all outstanding delinquencies over the same period showed a 33-point increase. Although this might not seem like a dramatic increase, they also point out that the penalty for major negatives on an account decreases over time, so the recovery after it actually falls off can be modest.

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