Credit Report Q&A

Will spending less and saving more improve my FICO score?

While putting more money towards savings is usually a good idea, it's not necessarily going to improve your FICO® score. Your FICO score does not consider the amount of disposable cash you have at any given time. Therefore, the amount of money you keep in savings doesn't impact your FICO score.

As far as spending less, that could have an affect on your FICO score. If you typically use your credit cards for purchases and you don't always pay off the balance on those credit cards, then you may notice an improvement in your score by curbing your spending habits. Your FICO score factors in the balance on your revolving credit accounts (for example, credit cards). It's a good idea to keep the balances on your credit cards low and pay them off each month. By limiting your spending, you may accomplish both!

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