![\"credit](\"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2018\/05\/FICO_credit_score.jpg\")
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\u201cPractice makes perfect\u201d is rarely true in real life.<\/p>\n
Certainly, the more you practice something, the better you get. Still, a quick YouTube search for \u201cbloopers\u201d will provide hours of entertaining proof that the most talented and experienced actors, athletes, and news anchors are anything but perfect. So, in reality, practice makes better<\/em>, but not perfect.<\/p>\n But, what about that magical financial goal we should all be shooting for, the perfect credit score? Is that just a pipe dream, too? Or is it actually possible to attain perfection when it comes to your credit?<\/p>\n The answer is, \u201cyes!\u201d A perfect credit score is not only possible, it\u2019s not even that hard to accomplish. What it takes is self-discipline, a little luck, and (for most of us) time.<\/p>\n The following simple, effective tips come from consumers who have managed to \u201cpractice\u201d good credit management well enough and consistently enough to achieve the elusive 850 (the highest possible score on the popular FICO credit rating scale). Beyond bragging rights, pay attention to how this feat provides practical help, too.<\/p>\n Smart consumers realize that credit is a powerful tool, meaning it can make life easier and help you get a lot of great things accomplished, but it can also be dangerous if it\u2019s used carelessly.<\/p>\n With a loaded nail gun in hand, a skilled carpenter or roofer experienced with the tool can accomplish ten times the work they could get done with a standard hammer, and the chances of bending or breaking a nail are slim-to-none.<\/p>\n However, if someone who doesn\u2019t know how to use it picks up a loaded nail gun, not only are they unlikely to do a very good job completing the work, but everyone on the construction site had better duck.<\/p>\n If you\u2019re shooting for a perfect credit score, you need to learn all you can about how credit works<\/a>, then concentrate on applying what you\u2019ve learned in making your daily decisions.<\/p>\n Carrying the nail gun analogy one step further, when the inexperienced worker picks up that tool, who\u2019s most likely to get hurt? Yes, the person holding the nail gun.<\/p>\n Once you\u2019ve taken the time to learn how credit works, what affects your credit score negatively<\/a>, and how you can repair your credit<\/a>, you need to avoid \u201cshooting yourself in the foot\u201d by making silly mistakes like spending uncontrollably, missing payments, or over-extending yourself unnecessarily.<\/p>\n Just one late payment can hit your credit score hard, (since payment history makes up about 35 percent of your total score calculation) and a negative factor like that can remain on your report for up to seven years.<\/p>\n Lenders like to see that you\u2019re able to responsibly handle various types of credit. This is so important, in fact, that it makes up about 10 percent of your credit score.<\/p>\n There are two basic types of credit: installment and revolving. Installment credit includes things like a mortgage or car loan, in which you borrow a lump sum and are required to pay back a set amount each month for a set period of time in order to pay the loan off. Revolving credit includes most credit cards and lines of credit, in which you are allowed a maximum credit limit, but can borrow any amount under that figure at any time, paying the debt off as you go.<\/p>\n These credit types are further separated into secured and unsecured credit, with unsecured credit relying more on your proven trustworthiness as a borrower.<\/p>\n Consumers with the highest credit scores maintain a healthy mix of these different types of credit and manage all of them equally well.<\/p>\n About 15 percent of your overall credit score is based on the average length of your credit history. The longer your history, the higher your score, since it gives lenders more information on which to base their decisions.<\/p>\n The average length of credit history among consumers with perfect credit scores is about 30 years. To accomplish this, they rarely close any accounts, even if they\u2019ve destroyed the card and never access the account for any reason.<\/p>\n Another important consideration is your credit utilization (worth 30 percent of your score,) which is the total amount of available credit that\u2019s been extended to you compared to the amount you\u2019ve actually used. If you already have a significant amount of available credit, but you\u2019re only using a small portion of it, lenders see this as an excellent sign of your ability to manage credit responsibly. As a result, they\u2019re more likely to offer you more.<\/p>\n Those with perfect credit scores average a utilization ratio of just seven percent<\/a>. So, for instance, for every $10,000 they\u2019ve been offered in various forms of credit, they\u2019re maintaining a balance of just $700 month to month.<\/p>\n The easiest way to accomplish this \u2014 beyond using credit sparingly \u2014 is to keep revolving credit accounts open with little or no balance (as noted in Tip #4.) Then, when the credit card company inevitably offers you an increased credit limit, accept it graciously. Just don\u2019t take that as permission to start spending more. By upping your limit, they\u2019re automatically boosting your utilization ratio (as long as you don\u2019t spend more to match.)<\/p>\n The last 10 percent of your credit score is based on how often you apply for credit, or how recently you\u2019ve done so.<\/p>\n The algorithms make allowance for \u201cshopping around,\u201d such as when you\u2019re visiting several different car dealerships to find the best deal on your next purchase. They do so by counting several inquiries for the same type of credit within a few days as just one inquiry.<\/p>\n However, if you\u2019re applying for something new every month or two, it\u2019s going to hurt your score. To lenders, this looks like the behavior of a desperate individual who\u2019s struggling to catch up from some financial downturn, so it makes you appear less trustworthy as a borrower.<\/p>\n That\u2019s why it\u2019s best to rely on credit limit increases (as noted in Tip #5) rather than applying for new credit if you\u2019re hoping to boost your utilization ratio. Likewise, using older, active accounts with no balance in them (as recommended in Tip #4) offers a preferable safety net to applying for new credit if you need access to more funds.<\/p>\n If you followed all the other tips above and handled your credit masterfully, you could still end up with less than a perfect score. How?<\/p>\n You could be one of the millions of Americans with errors on their credit reports<\/a> that are dragging their score down. That\u2019s why consumers with the highest credit scores stay on top of their credit reports through regular monitoring, and routinely dispute inaccuracies with the credit bureaus.<\/p>\n If you\u2019d like to access your credit report for free<\/a> and learn more about the credit repair process<\/a> for fixing errors on your report, contact CreditRepair.com today. Your perfect credit score could be just around the corner.<\/p>\n <\/p>\n Carry on the conversation on our social media platforms. Like and follow us on Facebook<\/a> and leave us a tweet on Twitter<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" \u201cPractice makes perfect\u201d is rarely true in real life. Certainly, the more you practice something, the better you get. Still, a quick YouTube search for \u201cbloopers\u201d will provide hours of entertaining proof that the most talented and experienced actors, athletes, and news anchors are anything but perfect. So, in reality, practice makes better, but not […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[58],"tags":[39,67,41,124],"yoast_head":"\nTip #1: Learn about credit and respect it<\/strong><\/h2>\n
Think of it like a nail gun:<\/h3>\n
Tip #2: Don\u2019t shoot yourself in the foot<\/strong><\/h2>\n
Tip #3: Mix it up<\/strong><\/h2>\n
Tip #4: Play the long game<\/strong><\/h2>\n
Tip #5: \u2018Thanks\u2019 to rising credit limits, \u2018no, thanks\u2019 to using more credit<\/strong><\/h2>\n
Tip #6: Take the application process slowly<\/strong><\/h2>\n
Bonus Tip: Keep an eye on your score and fix errors on your report<\/strong><\/h2>\n
Learn How it Works<\/a><\/div>\n<\/div>\n<\/div>\n