Improving my Fico score
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Will my Fico score go up if I curb my spending and put more money towards my savings?
Not a bit
Fico score has nothing to do with how much you save. Fico score formula doesn’t consider the amount of disposable cash you have, nor your savings.
It may, a bit
If you spend less, your credit card balances will be lower, and that may boost your credit score a bit (20 – 70 points).
It will get you better terms, though
Putting more money towards savings is always a good thing. While it won’t necessarily improve your Fico score, it will certainly help you get better terms.
Fico score in itself doesn’t consider your savings or the amount of disposable cash you have. But, when it comes to making a lending decision of considering terms, spending less always looks good.
Lenders do consider your total debt to income ratio, so spending less may certainly help you get approved.
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