If you're aiming for a perfect credit score, you'll need to aim for an 850 score. That's the highest FICO and VantageScore available for the most widely used versions of both credit rating models. It's hard to get a perfect credit score of 850, but an excellent credit score is more achievable. To get there, you'll need to have a very low credit utilization rate and a strong credit history. Achieving the highest possible credit score requires following several important financial best practices.
Both models look favorably on consumers who have longer credit histories and lower credit utilization rates. As your credit scores go up, you'll see savings along the way, as lenders see you as a more reliable borrower. You won't achieve a score higher than 800 credits overnight, so you'll need to be patient as you work toward that goal. If you want to benefit from competitive rewards, annual statement credits, luxury travel benefits, 0% APR periods, and more, you'll need at least a good credit score. In addition, credit ratings can affect decisions not to provide loans, such as whether the landlord will agree to rent an apartment to you.
The credit utilization ratio is a measure of the credit you're currently using divided by the total amount you've borrowed. A perfect credit score can be achieved, although only a small percentage of Americans do so at any given time. Here's what you need to know about the perfect credit score and if it's a goal worth striving for. A credit score ranges from 300 to 850 and is a numerical rating that measures the likelihood that a person will repay a debt. Applying for new credit may have a slight negative effect on your grades temporarily. But the higher score can be difficult to maintain, and in reality, an “excellent” score is just as beneficial.
To get there, you'll need to understand what your FICO score means and how it's calculated. You'll also need to practice good financial habits such as keeping your credit utilization rate low and having a long history of on-time payments. It's possible to achieve an 850 credit score with dedication and patience. To get there, you'll need to make sure your payment history is spotless and keep your debt levels low. You should also check your credit report regularly for errors or signs of identity theft. Achieving the highest possible credit score isn't easy but it's worth it in the long run.
With an excellent or perfect score, you'll be able to take advantage of competitive rewards, 0% APR periods, and more. Plus, lenders will see you as a reliable borrower and offer better terms on loans.