Achieving A Perfect Credit Score

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Achieving a perfect credit score would be great, but not necessary. The FICO credit scoring model ranges from 300 (bad credit) to 850 (perfect credit). If your credit score is in the mid 700's, there is no advantage having a higher score because you're still going to get the same interest rates either way. However, if your credit score is not in the mid 700's, there is room for improvement.


If your credit score is good and you want to try to improve your credit score to perfection, then here are some helpful tips. First, even if you pay off your credit card balances every month, you may still show a balance on the day your credit report is pulled. Creditors like to see individuals who use credit sparingly. This tells lenders that a individual will not have a problem paying future loans. Second, the FICO credit scoring model will examine how much of your available credit you are currently using and will penalize your score if it's too high (50% and above). Ideally, the lowest is the best, but on a average, creditors like to see no more than 35%. Third, try not to apply for credit more then twice a year. Too many credit inquiries within a two year period will lower your credit score. Finally, and this goes without saying, make every monthly payment on time. One late payment on your credit report can drop a credit score up to 100 points.

It is a good idea to pull your own credit report once in a while to check for errors. Pulling your own credit report will not hurt and affect your credit score.

When trying to achieve a perfect credit score, just keep paying your bills on time, maintain low credit card balances , and apply for credit only when you need it and not every time you just want it.

Helpful Tips To Protect Your Credit Once you have obtained credit, it is essential to protect it. This means safeguarding your credit, debit, and ATM cards, as well as your account and personal identification numbers (PIN). Carry only the cards you expect to use, and keep the others in a safe place. Maintain a list of account and telephone numbers of the companies that issued your cards. Then, if the cards are lost or stolen, you can notify the companies quickly. If your notification is received before the cards are used, you have no liability. If it is received after a credit card has been used, your liability cannot exceed $50 for each card. Your liability for ATM cards depends on how quickly you report the loss. If you dispute an item on a bill, you are responsible for notifying the creditor in writing within 60 days of receiving the bill.