Prefect credit score and rating
Perfect credit score based on the FICO credit scoring system, is in 840 to 850 range. How really perfect your score and credit rating should be to get the best deal in town these days? Anything over 760 middle credit score I would consider just perfect. Personally, the two highest scores I have seen were in 810 to 820 neighborhood and few things stood out - both credit reports had very established lines over 4 years old each, including mortgage and installment loans as well as two or three credit cards. The interesting thing was that credit cards showed only around 10 to 15 percent usage rate, meaning that those consumers as an example carried only $50 monthly on a credit card with $500 credit limit. Were those factors that brought credit scores near perfection?
In my opinion, trying to achieve a perfect credit score is a waste of time. The truth is that unless you are simply obsessed with that, a perfect credit score is not needed. Just maintain them over 760. Pay your bills on time, neither apply nor open new credit card accounts but stick to the ones you have for years and pay credit card balances in full monthly. If you do carry a balance or a few, keep them under 10 percent of your combined credit limits. Here are more detailed guidelines on how to push your scores to the maximum,
- have three to five revolving accounts like credit cards
- one or more installment account like a mortgage or auto loan
- the older your accounts the better it is for credit score and rating
- all accounts must be in good standing
- limit hard credit inquiries to no more than one a month
- don't charge your credit card more than 15% of the credit limit
Then over the time, you will get a near perfect credit score and rating.
Tue Jun 30, 2009 11:06PM by Tony | More in Credit Repair | Comments (0)
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