The following post is from Melissa Batai
If you have a credit score of 850, your credit is considered perfect. That’s because the most common measurements of credit scores only go to 850. However, maintaining a credit score of 850 month after month is extremely difficult to do. Besides, you don’t really need to maintain a perfect score to reap the benefits of being in the top echelon of credit scores.
800 Is Good Enough
Why don’t you need to strive for an 850 score? Think back to your days in the classroom. Let’s say an A+ is 96% or higher. Trying to get an 850 credit score is like trying to make sure you earn every.single.point available through the semester. Yes, you could work hard to do that, but getting 100% on everything is difficult, and honestly, it doesn’t matter. The person sitting right next to you earning 96% is going to show the same A+ on her report card that you are getting.
In the world of credit scores, 800 is good enough. Any score that is 800 or above will land you in the top echelon of credit scores and give you the best interest rates available.
740 Is Considered Very Good
Keep in mind, any credit score over 740 is considered very good. One of 800 or above is just the upper tier.
How to Try to Achieve a Credit Score of 850
For all of you overachievers out there who would like to try to earn a credit score of 850, there are steps you can take to increase your chances:
Pay Off Debts
The people with the best credit scores have less than 9% credit utilization, meaning that of the available credit they have, they only use 9% or less of it.
Use Your Credit Regularly
Having said that, make sure that you use all of your open credit lines regularly. Ideally, pay off your credit cards completely, and then use each line of credit a few times during the month and pay them off immediately. An easy way to do this is to assign automatic payments to your credit cards, such as your monthly electric bill to one card, your gas bill to another card, etc.
Pay Your Bills on Time
Even one late payment on your credit history can have a significant effect on your overall credit score. Be diligent about paying all accounts on time.
Have a Long Credit History
The longer you’ve had credit, the better your score can be. Your credit history proves over time that you use credit responsibly. The people with the best credit scores have accounts that are over nine years old. To maintain this, there are two important steps to take:
Don’t close accounts for your longest standing credit cards. The ones you’ve had longest are the ones that improve your credit score.
Use the cards so the creditor doesn’t close your account. Credit card companies frequently close accounts if they’re not used. Make sure you use the card regularly so the company doesn’t cancel your card and force you to lose the credit line that has been on your credit report the longest.
Though it is very difficult, you can achieve a credit score of 850. However, it is a fleeting goal. Instead, do your best to maintain a credit score of 800 or above, which is among the best of the best.
My Question for You
How high is your credit score? Do you strive to achieve a perfect credit score, or are you happy with anything that is 800 or above? What steps would you add to help people increase their credit score?