The FICO system was developed more than 50 years ago. It provides checking the creditworthiness of anyone. It sets a so-named FICO score for everyone. Based on this score, various banks that lend money decide whether to credit you or not, and at what rate. The FICO score ranges from 300 to 850 and the higher score you have the better it is for you when searching credit.

It's the best to have a credit score of 700 and above. Then you can easily get loans, lower interest rates, and credit cards with fewer fees, and so on. Always keep in mind these and other merits of a high credit score.

Before beginning to raise your score, you should know there are three types of FICO scores, one each from the three main credit bureaus - Experian, TransUnion, and Equifax. You need to obtain a copy of your credit report from each of the three.

The first stage of the process is to find all of the negative information on all three of these files, such as:

• Items that are older than 7 years old
• Accounts you never even owned
• Bad marks on credit cards that were closed years ago.

This kind of information will be always found.

Once you find any mistakes, notify a credit bureau and demand the items be removed. By law, they must remove the mistakes. Your score will increase at once.

The second stage is to start paying your bills in time and ensure that you do not miss any credit payments. Try not to max your credit limit 50 percent. Remember those merits of a high credit score as you try to repeat your old habits.

In the meantime, from time to time, every month the bureaus will report that you pay in time. Your score will gradually increase.

That's a pretty modest strategy for building and maintaining a high credit score, giving a good result.

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