What is the perfect credit score? A FICO score is based on your credit worthiness and how you have paid your bills on time.
Achieving the perfect rating is nearly impossible. However, most financial institutions prefer a rating of 750 or better.
However, even many people who have never missed a credit payment, or always paid their bills on time, they can still have a medium rating. It’s still a mystery and one of the best kept secrets. In general, the rating doesn’t matter when a person reaches 775 or more to reach a perfect credit score.
A rating is a badge of achievement and potentially a subject of conversation. What many people do not realize is that it becomes easier to get credit as the score approaches 800. Even minor errors on the report can end up docking the score by 10 to 20 points or more. It’s also harder to erase and recover from it quickly as the mistakes appeared.
The best way to get a perfect credit score is to pay off credit card balances in full each month, never miss a bill payment, have a good mix of debt-credit, student, auto and mortgage-and pay off large outstanding balances in a relatively short time frame.
Credit bureaus like to see behavior like paying off mortgages in unusually short periods of time. Avoid taking out personal loans; generally, credit bureaus prefer it when people stick to revolving credit accounts and secured debt like mortgages and auto loans. The reasons is simple: It shows that you are able to pay back lenders.By: Rob Adams
Add our Facebook page to receive updates and participate in new tools and features. It's a great way to stay connected with all the latest news.
Receive daily bite-sized updates by following us on Twitter. Receive Tweet-sized 140-character updates on your mobile phone device or PC.
Subscribe to our daily RSS feed to get the latest national news stories. We offer a feed for every topic including business, entertainment, health, politics, science & technology, travel and more.