How to Get the Perfect Credit Score

If you’re aiming for the perfect credit score, discussed below are the strategies used by people who have actually reached a FICO score of 760 and above- ratings that lending companies today consider as excellent, according to Fair Isaac.

And while financial organizations may use their own credit scoring formulas that are different from the FICO model, consumers must always strive to get the highest score possible, in order to get the best deals from lenders.

How to Raise Your Personal Credit Score

Loyalty and credit-worthiness. It would be good to build a strong relationship with at least two to three major banks as it shows your loyalty and credit-worthiness. Instead of switching from one credit card to another just to enjoy the introductory APR, why not find at least two credit cards with a reasonable rate and stick to it?

Use your credit card to pay your important bills making sure that you are able to submit your payments on time. Instead of maxing out your low-interest credit card, spread your debts with two to three accounts to keep your credit usage minimal.

As years go by, your impressive payment history as a credit cardholder will surely have a solid bearing to your issuer. By then, you will be in a much better position to ask your issuer for a lower interest rate or make modification requests on account of your loyalty. Many creditors would gladly help out a good customer to keep them with their company than lose them to others companies.

The right mix of credit. One way to raise your credit report score is to prove your capability to handle different types of accounts. Too many credit card accounts can do more hurt than good to your credit score, especially if you fail to use them responsibly.

On the other hand, you can open at least two credit card accounts and acquire at least two different loans (auto loans, personal loan, mortgage) under your name to show your credit-worthiness. Needless to say, building a high score would largely depend on how well you can keep up with your monthly payments.

What the fine print says. Whether you are in search for a new loan or a new credit card, it always pays to do research and to carefully read each statement in the contract. Never sign up for anything without weighing the pros and cons or exploring the privileges and restrictions. Keep in mind that once you place in your signature, you are bounded to your lender’s terms.

Accuracy and your score. Errors in your credit file can do great damage on your personal rating. To make sure that your report contains no false information, order a copy of your annual credit report from each of the three major credit bureaus every six months or before applying for new credit. If you discover errors, you can send a credit dispute letter to the agency that issued your report so that an investigation can be started. Yes, you need to be vigilant in protecting your credit history from erroneous reporting, identity theft, and scams.


About the Author:

Suzy Vanstrusen is a credit analyst and a writer on the website She has been providing consumers with tips and wise information about credit repair as well as helping you out more with your bad credit loans.  Copyright © 2011



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