What is the highest credit score you can have?
About 1.6% of the U.S. population had perfect FICO scores as of April 2019, according to a FICO report. Consumers that reach this height will typically qualify for the best rates and terms on various financial products, such as credit cards, mortgages, student loans, auto loans and personal loans.
If your goal is to achieve a perfect credit score, you’ll have to aim for a score of 850. That’s the highest FICO score and VantageScore available for the most widely used versions of both credit scoring models. While this may seem like a challenge, it is still very possible. We’ll walk you through the steps you can take to get the highest credit score possible.
See below for details on each of the tips on how to increase your credit score!
- The first tip on how to increase your score is, without a doubt, to clear your name. After a challenging year in which many people lost their jobs, and the cost of living rose a lot, the United States is summarizing the economy and this is the ideal time to make up for lost time to get out of the red. The problem is that being in debt can snowball and is more common than you might think. Any unforeseen event, higher expenses, credit card overdraft can become debts, and interest will make it impossible to pay off. So think about the best ways to get rid of debt in the healthiest way possible for your pocket.
- Keep your registration data always up to date
The more transparent you are, the easier it is to trust you, don’t you agree? Companies that grant credit agree. So, the first tip is to keep your information up to date. If your accounts are registered at different addresses, for example, how will financial institutions know exactly where you live?
Therefore, whenever possible, check that your details are correct in the credit bureaus so that there is no mistake.
- Be a good payer
One way to improve your score is to be a good payer, that is, pay your bills on time and without delay. A tip is to put the accounts in automatic debit, for example. Because that way you don’t run the risk of missing the payment date and continue to be well evaluated in your score. To show that you are a good payer, punctuality when paying your debts is essential.
- Negotiate all your debts
That’s the word of the day for you to get out of the hole. Talk to your creditors. The more you open up to them about your situation, the more options you can have, including with less interest and penalties. There is also the option for you to pay the entire amount of debt at once with a discount. This even brings options to decrease values.
- Make a consortium
Don’t forget about the possibility of making a consortium, you start saving and, at any time, you can be drawn, which makes your big dreams closer and closer. The consortium is also a great way to pay off debts at once, paying much less interest than an overdraft or credit card.