FICO score optimized for the last two years of credit history

One of the most common pieces of advice about improving a credit score is: pay bills on time, lower outstanding balances, and wait.  Wait for what?  The rather vague reference to time reminds me of the words a young man might hear from his mother after a bad breakup: “Son, time heals all wounds.”  Such answers are not comforting at all for the immediate pain.  What’s the quick fix?   

There is no quick fix. However, while the advice to wait is true, much better advice would inform consumers of just how long they should wait to see a significant improvement in their credit score. 

Here’s some information that may help: research done by a Wall Street analyst reports that the FICO score is “optimized for a two-year horizon”.  In other words, the last two years of credit reporting data are weighted more heavily than the middle or beginning of one’s credit history.

That is good information to know even though in these difficult times a much shorter period would be ideal –like the last two months of on time payments.