What To Do To Have a Perfect (or Near-Perfect) Credit Score – Part I
While aiming for a perfect credit score might seem something impossible for some people, actually achieving that coveted 850 FICO score is not such an unsurmountable task to accomplish. It is true that only the minority of people have obtained it by taking on personal loans and other financial obligations and keeping their financial behavior and their payments completely spotless. At the same time, not only repaying a personal loan in time can help with this, other healthy financial activity like monitoring your credit, and using only a small amount of your credit each month also helps a lot.
Yet, despite the truth being that only about 0.5 percent of consumers actually achieve the 850 mark, reaching this desirable credit score is not impossible. And even if for some reason you can’t achieve it, taking it at least over the 800 number is perfectly doable. As proof, FICO released a report not long ago that demonstrates that a surprising 18.3 percent of consumers currently have a credit score between 800 to 850 range despite having active personal loans.
To start, one of the most important factors to consider in order to start increasing your credit score while at the same time holding personal loans and such is to change your attitude towards credit and personal loans completely. So instead of being intimidated when approaching a personal loan, see it as something you are in control of.
According to people who now boast credit scores above 820 FICO, scores like that take years to achieve but are perfectly doable. Once you achieve them though, it needs work to maintain like that. To start, you will need to keep open credit accounts that are unused while at the same time resisting credit card offers that will surely start piling up on the mail. Among the benefits of achieving such a high credit score are the ability to receive lower interest rates on personal loan terms and on auto leasing and home mortgage deals.
But rewards for those who achieve a credit score of an 800-plus go far beyond simple convenient interest rates on personal loans and other financial deals. In fact, two areas where a person with good credit can benefit from but that are oftentimes overlooked are a) Insurance premiums, and and b) Whether someone looking for a gets hired. The reason for these scenarios to depend so much on one’s credit score is that, in the case of insurance premiums, these tend to be calculated based on one’s credit history, while on the case of being hired, this is the result of almost half of the country’s employers conducting credit background checks on those who apply for jobs on their companies. They might not be able to access the exact credit score of a candidate, but they can see his or her history, which can help greatly as well.
People a looking forward to achieve exceptional credit score scores are also known as “high achievers.” According to several reports, people with very high scores all show similar behaviors with their credit habits and their personal loans. To start, they use no more than just 7 percent of their available credit. They also have credit accounts that date as far back as 25 years ago. Additionally, most of them have personal loans and up to seven credit cards. As people become more and more aware about how beneficial having a good credit score can be, more of them consider changing their financial behavior in order to achieve it, starting to acquire personal loans and repaying them in timely fashion and so forth.
Another important tip to consider for anyone aspiring for an 800+ credit score is to check their credit records every month, since a person’s credit score changes usually over a monthly cycle. this will allow everyone to verify if what they are doing to improve their credit score is actually working.
On our next article we will take an even more in-depth look at how not only personal loans, but also many other factors can help anyone improve their credit score.