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I need some advice....

I took the LSAT in June and October and got a 161 both times. My lowest practice test score in between taking the June and October tests was a 165. My last two practice tests were 171 and 173. I know I can do better than my current score, but I am worried how bad my app will look if I don't improve my score by 5+ points. I am looking to apply for fall 2012, should I retake in Dec?

If you're applying for the fall 2012 cycle, you might as well take the LSAT next February (or June if you don't want to take a non-disclosed test).

You'll definitely need more than a month to get your score consistently in the 170s.