Will Borrowing more increase my Credit Score?

My credit card companies recently sent me notices that my FICO score changed. At first, I was somewhat alarmed.

Normally, I don’t pay too much attention to my credit score, which is measured by the FICO. I keep a close eye on all of our spending, but I’m always concerned about changes since I’ve been the victim of identity theft — twice.

The good news was that our family’s FICO score went up. In fact, it’s nearly perfect (850 is the top mark). Should I have started bragging to my neighbors and family?

Actually, my FICO went up because I’ve borrowed more and my payments have all been on time. When our family minivan was totalled, we had to buy a new car and took out a loan. We weren’t planning to buy a new car, but the loan offered by the dealer was interest free.

In the credit world, borrowing more can raise your FICO score. But there are so many other factors to understand, you need to drill a little deeper in order to maintain a good credit record. Read the full article…