Steps to Achieving a Perfect Credit Score

Having a perfect credit score can be financially beneficial for many reasons, but is it possible to obtain? While it may not be the easiest goal to accomplish, there are ways to achieve a perfect or near perfect credit score.

Always make payments on time
A sure fire way for people to ruin their credit score is to miss payments, as 35 percent of a person’s credit score is made up of their record of on-time payments. Even missing a single payment could have a negative effect on your credit score. If you want to achieve a perfect credit score, set up automatic bill payments to make sure you are not late on your payments.

Avoid credit card debt
While you need to use your credit cards to get a perfect score, you also need to be sure not to let your credit card debt get too out of control. It is recommended to never have more than 10 percent of the total credit card limit used at a time, so you need to pay off the majority of the balance each month.

Establish credit history

If you want to achieve a perfect credit score, you need to be sure you have a long history. This may mean never closing an account. For example, many people get their first card in college and it may be tempting to close this card when they get older. However, it would be more beneficial to keep this card open and use every once in a while, so it will still be reported to credit agencies.

Don’t over apply for credit
Having a wide array of credit accounts – credit cards, auto loans, mortgages – is beneficial, but you need to be sure you don’t over apply for credit. Each time a person applies for an account, they get a hard inquiry on their credit report. Too many of these inquiries in a short period of time can negatively impact your credit score.

In addition to these other tips, you may want to consider using credit counseling services. These professionals can help you develop a personal plan to achieve a perfect credit score. This can be especially helpful if you aren’t financially savvy.