How to Get a Perfect Credit Score
Getting a higher credit score is a tricky thing. There are several factors which control the score. Do you want to get a perfect credit score? Then you might have a high level of financial responsibility. The score counts on a scale of 850. That means you can get the maximum credit score of 850.
It’s hard to ensure that you will get the perfect score. But you can try for it by maintaining some facts. Only a few people can score above than 700. The score is beneficial for anyone, and FICO (Fair Isaac Corporation) calculates it carefully. However, in some cases, there are no benefits of this score if you are in the top tier. Let’s see how you can increase the score.
Steps to Get a Perfect Credit Score
Understand the Calculating System
The first step to get a perfect credit score is knowing how the agencies calculate it. Most of the agencies use the types of credit, payment history, and a ratio of debt to credit to calculate this score. If you want to be top in each section, should give importance on the following things.
Different agencies have a different calculating system about the scoring. But one thing is common for each agency, and that is the payment history and gratitude level. The recognition level indicates how much credit you are using and how much you qualify for. Only these two parts are responsible for up to two-thirds of your credit score. Now you know major two parts of calculating the credit score. So, to achieve a perfect score, give importance in these parts.
Make Payments on Time
This is one of the best ways to give a positive feedback for the score. If you pay on time each time, this will help you to increase the score. On the other hand, a late payment will decrease the score. To avoid any issue in paying on time, you can set up an automatic payment system with your creditors. Allow them to pay of the money in every month and avoid the late payment.
Keep Your Balance Low
This is a good trick to get a higher credit score. Because the Credit bureaus will check the ratio of available credit limits to the amount of debt. Only use credits when it is an emergency and pay it within the time. Try to maintain your debt below 35 percent of your total available credit. When the debt crosses this limit, it affects negatively to your score.
Find Errors in the Credit Report
You can easily get a free credit report from the annual credit report website. Then go through the whole report to know what about your situation. If you read it carefully, you may find there are several mistakes of you in the report.
Also, check for the accuracy. You can cross check it with your financial data. If you find any errors of the report, contact both the credit bureau and the creditor to have it removed from your account.