How to Get a Perfect Credit Score – Credit Cards, Perfect Credit – CreditCardNegotiations.com
It might be easier to win the lotto then to have a perfect credit score. Your credit score is something that sticks around your entire life. It mostly will start around your 18-21st birthday as you go out on your own and finance something for the first time.
But how do you get a perfect score of 850?
It can be like fighting a losing battle because of so many obstacles that can affect your score. 1 late payment, going over the limit, to many inquiries, bankruptcy, foreclosure’s and etc.
I have made it to 827 in my Real Estate investing days. When you pay off a few homes, your score can jump for sure. But also the opposite can happen if you fall behind on payments or even a bankruptcy can knock that score way down.
According to FICO, only about 1 million people in the U.S have a full 850 credit score. That’s less than 1% of our U.S population. Most people are setting around the 700 club just by making on time payments.
The difference between the two scores is; both will usually be accepted for the same loans if applying for them. But, the people with 850 scores will have the lowest rate available and twice if not more than the credit limit as the 700’s scored people.
Some of the credit card forums I belong to, ask people to post their credit score in their signature. Some see it as bragging, but I see it as creditability. You don’t what your questions about credit being answered by someone with a 600 credit score!
If you’re trying to make it to the elite credit group there is good news for you. You do not have to have an 850 credit score to receive their benefits. FICO says if you have a 760 or above you will typically receive the same benefits as a person with a perfect score of 850.
Ok, how do you get there? Here it is!
This information is from www.FICO.com website.
- They Have a Long and Impressive Payment History and a Clean Record
The bulk of your credit score is determined by your payment history and the amount of debt you may or may not have currently on file. Unsurprisingly, those with perfect credit scores use credit regularly while paying it off on time, every time. They also have a squeaky clean record. Ulzheimer explains that the credit elite have no debt to speak of. “No liens, no bank repossessions, no settlements,” he says. “Nothing.”
- They Maintain a Diverse Set of Accounts
According McClary, credit lines fall into two major categories. Installment accounts are closed-ended and require consumers to pay a fixed amount each month until the entire balance has been depleted. These typically include mortgages or car loans. Revolving accounts, on the other hand, limit the line of credit, but have balances that fluctuate. These essentially are the accounts tied to the credit cards in your wallet.
Top credit scorers have a careful balance of both accounts on record. “They’ll have a mortgage, a car loan and a few credit cards on file,” McClary explains.
- They Have a “Well-Aged” Credit Report
When I pulled my own credit report a few weeks ago, I was surprised to learn that my score, though quite good, still paled in comparison to my financial mentors, good old mom and dad. The truth is, unless they should both decide to stop managing their credit so meticulously, I stand little to no chance of ever surpassing them.
“One advantage to being older is that you tend to have a longer credit history,” McClary says. Keep in mind, though, that it’s not your age, but the age of your oldest credit account on file that influences your overall score. As such, you may want to keep open that store charge card you opened up on your 21st birthday.
- They Have a Very Limited Number of Credit Inquiries on Record
On the other hand, those without a store charge card shouldn’t simply open one frivolously. While having large number of credit card inquires on file won’t dramatically decrease your score, it can keep you from joining the credit elite, especially if several inquiries are recorded over a short period of time. This is why Ulzheimer advises that you refrain from opening up a litany of store accounts during the holiday season, no matter what type of discount the retailer is offering as an incentive to do so.
“Applying for credit organically as you need it is fine,” Ulzheimer says, before cautioning “never use your credit score to get a 10% discount at the mall.”
If you need help to get here, I have an eBook that helps people with lowering interest rates on credit cards. But this eBook goes into much more detail about all types of credit cards, banking, personal finance and credit score questions and answers. This is the most detailed information of credit cards and how to lower interest rates anywhere. www.CreditCardNegotiations.com
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