Credit Score Of 800 Is Not Impossible

By now, most consumers with even a minimal history of credit are
aware that something known as a credit score has a tremendous
amount of influence on his or her financial lives The score, a
distillation of one’s credit history reduced to a three-digit
number between 350 and 850, represents to the world the overall
credit worthiness of the individual that it represents
A score towards the lower end of the scale means that
you are a poor risk for a credit card or a loan, while a score
at the upper end means that you can get the best rates on just
about any type of lending Despite what you may think, it is
possible to obtain a score in the 800 range All it takes is
time and some discipline
Here are some tips that will
help you achieve a top credit score:

Don’t have too
many credit cards It’s possible to have too few, and it’s
possible to have too many Too few cards means not enough
credit, and too many means that you can potentially get into too
much debt Four or so is probably just about right

No late payments for the last seven years
Creditors understandably don’t like late payments, and they
stick around on your credit report for a long time Pay your
bills on time, even if you are just making the minimum
payment

Don’t apply for too much credit A
couple of inquiries a year is acceptable, but too many
applications for credit in a short period of time can put a dent
in your credit score as they make you look too eager or even
desperate

Make sure that your outstanding
balances on your revolving credit accounts do not exceed 30-35%
of your available credit It’s nice to have a lot of credit, but
it doesn’t look good if you actually use a lot of it Keep your
balances low It demonstrates that you are capable of paying
your bills

Have a long credit history of twenty
to thirty years Sorry, but it’s hard to accelerate this part of
the process Part of what it takes to achieve a top credit score
is the ability to maintain credit over a long period of time A
high score indicates a high level of trust and that can be
earned only through long experience

This may seem
like a lot of things to do, but none of them are actually very
difficult All it takes to achieve a high credit score is to pay
your bills on time, not apply for more credit than you need, not
use your cards too often and do it for a long time It may seem
odd, but the more you act like you don’t need credit, the more
you will have available to you

Tags | accounts, cards, creditors, discipline, payment, period, result, worthiness