Monday, November 26, 2018 / by Rich Hernandez
Are you trying to crack the code to getting a perfect credit score of 850?
Of the 200 million Americans with FICO scores, about 3 million, or 1.4%, have perfect 850 scores. FICO credit scores can range from a low of 300 to 850.
From the article:
This year, the average national FICO number is 700, just above where it stood in October 2006, before the run-up to our most recent financial collapse. The ranks of “super-prime” consumers—those with scores of 800 and up—have steadily increased since 2010, and now number over 41 million, more than consumers with scores of 600 or below.
So how do American achieve these perfect scores? Here’s a few tips:
Mess up your credit: I know, it might sound off, or even ridiculous, but messing up your credit, while not doing you any favors in the short-term, could help you achieve that perfect score in the long run. The Bloomberg article explained that one consumer hurt their credit by applying for a multitude of credit cards. In the long run, however, these cards all worked to create a longer average credit history.
Pay down credit balance: While keeping card balances before 30% is recommended for a good credit score, one consumer reported keeping his balance below 5% to obtain his perfect score, the Bloomberg article states. In order to keep this low balance, American may even need to make payments to their card more than once a month.
Don’t apply for new credit: One factor several consumers have in common is their pattern when it comes to applying for new credit. Many of them applied for several lines of credit at the beginning of their journey, which pulled their credit down initially, but gave it a boost later on when it boosted their average credit age. However, once they began to rebuild their credit, those with a perfect credit score didn’t apply for a new credit line, and instead applied to increase their credit limit when they needed a boost.
While all of these things could help Americans achieve a perfect credit score, one key question is: Is it worth it? Are perfect scores worth the time put in trying to achieve them? According to one expert – they’re not.
The Bloomberg article explains there is no incremental value to having a perfect score over a high score such as 760 or 780. The one exception? Mortgages