Finance — 2 years ago

What is the Highest Credit Score?

by Garry S.

What is a Good Credit Score, Highest Credit Score

Highest Credit Score Explained

FICO has determined the highest credit score be at 850. The range is from 300 to 850. Most people have credit scores that fall between 550-639 as a survey had revealed. It is safe to say that there are not many people who have the highest or perfect credit score. It is not an absolute necessity in order to obtain a loan or a credit card but having an excellent score which may not be the highest does help you in getting good rates for future borrowing requirements.

Credit Scores Are Not a Permanent Status

Even if you once managed to reach the perfect credit score of 850 according to FICO standard, there is no guarantee that you will be able to maintain the perfect score. Your aim should not be to maintain a perfect score but a good to excellent score. A perfect score will get immediately affected once you get a credit card or a loan sanctioned to you. A perfect score can be your stepping stone to obtain the amount you wish to borrow at affordable rates but be ready to lose the perfect spot. A credit score is thus totally dependent on each and every financial move you make.

What is a Good Credit Score

In order to get an excellent credit score, you have to maintain a good credit score over a period of time. It can be anywhere between 7 to 10 years. In order to get a great score, you need to have a good credit utilization score and a history of on-time payment of your loans or credit card outstanding. You should not meet a single payment and should make the payment well within the stipulated time. Keeping your lender informed on address change or regularly checking for error in your credit report will help you to take necessary steps on time and help you be on track with your payments.

If you have set your mind on a perfect score then here are some tips you can try to attain just that.

  • No outstanding – Be sure that out of all the accounts that have your name on it, has any outstanding amount. A left-off balance will not reflect well.
  • Payment history – Since 35% of your credit score depends on your payment history make it a point that you never get late on payments. Timely payments will help you greatly.
  • Credit history – If you are a beginner to the world of credit, it will take you years of maintaining a good score to reach a perfect score. In order to reach a perfect score, you need years of good credit standings to help you qualify for the perfect score.
  • Report correct information – If your data is incorrect then the credit score you get will naturally be erroneous. It highly helps to regularly review your credit report as often as you can.
  • Credit card management – Getting a credit card only because that one was the first one offered to you won’t help your credit score. Get credit cards when you need them. Look for the credit card that best suits your needs and you feel like repaying will be easy for you. Do use the credit cards that you already have rather than looking for new ones. The approved credit cards also are a part of your credit score consideration.
credit score range

With an excellent credit score, you can aspire to get certain premium offers on credit cards and even great terms for loans. Perhaps the best and most crucial benefit you can have with a perfect or excellent credit score is the fact that you know that you have excellent financial stability. A perfect score helps you boost your confidence in your ability to maintain a balance with your finances.


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