It is always a good feeling to achieve perfection in any aspect of your life. Bowling a perfect 300 game can get you in the local newspapers, and having a perfect credit score can help you get loans with extremely low interest rates. Every consumer can help their quest for perfection by knowing what the perfect credit score is and how they can get it.
What Is The Perfect Credit Score?
The three major credit reporting agencies (Equifax, Trans Union and Experian) all use different methods for calculating your credit score, but in the end all three systems wind up with a perfect score of 850. The traditional credit score range runs from 300 to 850, and there are plenty of realistic ways to achieve that perfect score.
Always Pay Your Bills Early And In Full
If you pay your credit bills on time, then you will help your credit score. If you want the perfect credit score, you need to pay all of your bills at least a few days early. You also need to pay the full balance due each and every month. Paying more than the balance due will help lower your credit obligation, but it is not necessary to pay more than your minimum payments if you want the perfect credit score.
Manage Your Credit
The allure of an available credit balance can be difficult, but you must avoid that temptation if you want to get the perfect credit score. Credit reporting agencies want to see that you can manage your credit, and to do that you must use no more than 10 percent of your available balance. For example, if your credit card has a $1,000 limit, then you should never allow your spent balance to go above $100 at any time. You should also have something spent on each card you have to show that you can use your credit and avoid problems.
Have Different Types Of Credit Events
If you want the perfect score, then you will not get there with a lot of credit cards. Your credit profile should have credit cards, a car loan, a mortgage and other credit events to give some variety to your profile.
Be In It For The Long Haul
Credit reporting companies want to see long-term consistency from consumers before those consumers can earn the perfect credit score. It would help if you joined a service that allowed you to monitor your credit reports on a regular basis, and gave you warnings when adverse events occur on your profiles. If you see an adverse event, contact the credit reporting bureaus immediately to get the event straightened out.
Stay In One Place
One key to a perfect credit score is to avoid moving from place to place too often. Sometimes you cannot help but have to move if your apartment building is closed or something else occurs. But if you can stay put, then that is a great way to help achieve the perfect credit score.
Perfection in your credit profile is not difficult, but it does take dedication and time. Once you achieve perfection, you will be able to get the best deals on just about any credit or loan offer you pursue.
Jim Treebold is a North Carolina based writer. He lives by the mantra of “Learn 1 new thing each day”! Jim loves to write, read, pedal around on his electric bike and dream of big things. Drop him a line if you like his writing, he loves hearing from his readers!