How to Get a Near-Perfect Credit Score
We all want to achieve excellence in something : in sports, in skill, trick. But when it comes to your merit, you can only do so much to get the highest score of 850. There are factors that can work against you and that you cannot change, such as how much time you had. your bills, for example.
The largest part of your ranking is your payment history and credit utilization . Together, they account for over half of your bill.
Paying your bills on time every month? Everything is fine with you – do not change anything.
Credit management can be challenging. You will be judged by how much of the available credit you use each month. If you have a credit limit of $ 10,000 and you have $ 1,000 on your balance sheet, that’s okay. This portion of your assessment will reflect your fairly responsible spending habits. But if your balance for that $ 10,000 limit is $ 9,800, your credit utilization – and, in turn, your entire credit rating – won’t be stellar.
The other three components of your credit score only contribute to 35% of your overall score and are more difficult to control. These are new credit accounts, length of credit history and credit structure . If you are a young or new user of credit or have few accounts, you are missing out on points in these categories. This is not your fault; it’s just how the game is played.
First and foremost, focus on your billing record and how much of the credit you are using. It’s more important to keep track of what’s going on on your credit report and form smart money habits than worrying about that magic number. Remember that you cannot participate in the big game until you practice a lot.