Perfect Credit Score

When you are looking for a loan, a perfect credit score is essential whether it is for a house mortgage or purchase of a new vehicle. What is the highest credit score on a range? It is 850 as per FICO. The lenders will be inclined to give you the required loans. You may be denied the loan if your credit score falls low. Should you manage to get the loan, you will still be charged excessive rate of interest as the lenders would consider you a high risk.

Will you be able to get a Perfect Credit Score?

There are many people who achieve a near perfect credit score. Though the credit scores fall in a range from 300 to 850, many people manage to keep their score above 750 and a certain percentage does get their scores above 800. Majority get scores in the middle somewhere. Some of them find a score of 850 a difficult fiscal challenge. This perfect credit score pursuit may not be the end of the world for them if they do not achieve it as most of the lenders offer decent rates even for people with a score of 750. While a credit score above 750 is considered excellent, a score of 850 means that you will be getting the best interest rates and benefits. An understanding of what is the highest credit score can be essential enough if you want to borrow big money.

What is the impact of a Perfect Credit Score on an Individual?

A high score of 850 may result in an individual maintaining a lower balance to limit ratio and a balance of revolving accounts in relation with installment loan accounts. A FICO highest credit score is broken down with 35% towards a record of timely bill payments, 30% for total credit cards balance, 15% for length of credit history, 10% for mix of loans and credit cards and 10% for recent applications for loans.

Credit score experts feel that very high scores can be achieved and maintained when people do not carry over balances from one month to another. Late payments can be avoided. It is better to pay five days ahead of the due date. Your score will get a boost if you pay your credit card bills early. Keeping very low balances as debit will also give a boost to the credit utilization ratio. The credit score will become stronger if you get your issuers to increase your credit limits and then try not to use that limit with discipline. It is always safer to look at your credit report once a quarter so that you can clear off any errors. With a perfect or very high score, getting credit will become easy for you as you will be eligible for better rates.

How can you raise your Personal Score to a Perfect Credit Score?

You can raise your personal credit score by building loyalty and credit-worthiness. The relationship could be built with a couple of major banks. You have to stick to two credit cards with a reasonable rate. When you use your credit card to pay important bills, you have to make your payments on time. Your payment history will then impress your issuer. Creditors will most likely help out a good customer and keep that customer with their company than lose him or her to other companies.

Another way to raise a perfect credit score is to have the ability to handle different types of accounts. Too many credit cards will hurt your score. Errors in the credit file can also do great damage to your credit score. It is better to order a copy of your credit report from each of the three major credit bureaus quarterly or before applying for new credit. You can send a dispute letter if you find out errors and an investigation can be done. You have to be vigilant if you are aiming for a perfect credit score so that you can protect your credit history from erroneous reporting and identity theft.

Credit Report Agencies

Credit report agencies maintain files on many million borrowers. Lenders who have to take credit decisions end up buying credit reports on their prospects and applicants and they buy these reports from the credit report agencies. Your credit report will include your credit history in the same way as it has been reported to the credit report agencies by those lenders who have given credit to you.

The credit report will list the types of credit you use and the duration of the time your accounts have been opened. It will also report whether you have settled your bills on time. It will inform the lenders how much credit you have used and whether you are looking for new credit. Your credit report does not take shape until a lender or yourself ask for it.

Three-in-One Reports of Credit Report Agencies

Credit report agencies are also known as credit bureaus. They are companies that are private and they collect data about your credit history from lenders like banks and credit card companies. There are three major credit report agencies in the United States of America. They are TransUnion, Equifax and Experian. When you ask for credit from a lender in form of a credit card or a car loan, the lender will request a copy of your credit report from all three credit report agencies. As credit reports give a detailed picture of your credit worthiness, the lender will decide mainly on what those reports say.

It is possible that each of your three main credit reports will be somewhat different from each other as each credit reporting agency works independently and many lenders do not report to all three agencies. Some credit reports contain errors on a routine basis. The Fair and Accurate Transactions Act of 2003 gives all citizens a right to request one free copy of their credit report each year from the three credit report agencies. The three-in-one credit report or three-bureau credit report offers a side-by-side comparison of all three of your credit reports in one document. This is a good way for the consumers to see the whole picture of their credit history and to identify the errors and receive early warning signs of identity theft.

Three Major Credit Report Agencies

The three major credit report agencies are Experian National Consumer Assistance Center, Equifax Information LLC and TransUnion LLC. The credit reports from these credit report agencies are made to reflect accurate and fair information about your credit history. Credit reports are used to measure your eligibility for credit cards, insurance, loans, mortgages and house rentals. Credit report agencies play a significant role in assembling and distributing credit reports.

Credit reports contain personal information like your name, address, social security number and date of birth. Your employment information includes your occupation details, employer details and the duration of time you have been working at your job. The credit information includes a list of your creditors and account information. The public record information includes data on bankruptcies, judgments and liens.

Who else can obtain Credit Reports from the Credit Report Agencies?

Credit report agencies can give your credit reports to you or in response to a court order or to a third party in connection with several situations. These situations could be to establish your ability to pay child support, employment or someone with a genuine business need for your credit report. It could also be given for underwriting of insurance or real estate transaction like an apartment lease.

Adverse information will remain legally on your credit report for various lengths of time. As per the Fair Credit Reporting Act, judgments and suits will have to remain up to seven years from date of entry or until the statute of limitations has expired. The same period applies for paid tax liens. Even though the credit report agencies do not always gather the same information from the lenders, they collect data and provide coverage of consumer credit information to all regions.