The Elusive 850: How To Perfect Your Credit Score

Have you ever wondered what perfect credit looks like? More importantly, is it even possible?

According to Experian, 1.2% of all FICO Scores in the U.S Currently rank at an astounding 850 credit score. Now, we all know you don’t need PERFECT credit to achieve your credit lending goals, but what does it hurt and how do we get there? If you’ve been working to attain the perfect FICO score, below is a list of a few takeaways to consider as you keep pushing toward your goal.

1. Having multiple credit cards or lines of credit is not a bad thing if you are sure to not mismanage your debts. In fact, John Ulzheirmer, one of the biggest names in credit reporting, was quoted saying, “I have 13 credit cards and a total of 19 accounts, active and inactive on my credit report. As of last month, I carried a total of $9,500 on those cards, with a total credit capacity of $133,000. That makes my utilization rate a low 7%.  “
2. Opening new accounts when necessary is not a bad thing! Be sure you are utilizing a healthy mix of different credit types and maintaining a healthy utilization rate. Credit Bureaus like to see you are actively participating in your credit profile.
3. Speaking of utilization rate, as a general rule it is suggested you keep your credit utilization under 30% of your available balance. John Ulzheirmer remarked, “I pay my cards in full each month and have never carried a balance. The beauty of not carrying a balance is that I never have to pay interest, no matter what my APR is.”
4. While income is not a determining factor to your FICO score, it’s important to understand that age is. Credit Bureaus like to see a lengthy credit history in your profile, so chances are your score will only naturally improve with time if you continue to take care of it properly.
5. Payment history is one of the most vital aspects to obtaining the elusive 850. Accounting for 35% of your score, it is crucial to manage the payments on each credit line in a timely manner.