Fair Isaac Corporation (FICO), Equifax Inc. (EFX), Three Perpetual Myths for How to Improve Credit Scores

Fellow Fool and personal finance expert Dayana Yochim says your credit history and total amount you owe make up 65% of your credit score. So keep the regular payments coming. Also, keep credit usage low. Some institutions, like Bank of America Corp (NYSE:BAC), will tell you that using up to 50% of your available credit is OK . But let’s be honest, it’s in the interest of those banks to have you using up your credit. A better bet would be to use 30% or less of your available credit, while 10% or lower should be your ultimate goal. If you’re trying to figure out which debts to knock out first, start paying off any no-money-down financing plans you have.

Although it can seem overwhelming, it is possible to improve your credit score in months, not years — so get started today!

The article 3 Perpetual Myths for How to Improve Credit Scores originally appeared on Fool.com.

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool owns shares of Bank of America.

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