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.