Your credit score is one of the most critical numbers in your financial life. A high credit score can save you money on loans and credit cards, help you qualify for a mortgage, and even make it easier to rent an apartment. Check out Credello’s guide on how to consolidate credit card debt so you can be debt-free and on your way to a high credit score.
There are a few different credit scoring models today, but the FICO score is the most popular. This credit score range goes from 300 to 850, with 850 being the highest possible credit score. A credit score of 850 is considered to be excellent and means that you have a very low risk of defaulting on your loan payments. A credit score in this range will also get you the best interest rates on loans and credit cards.
You can do several things to achieve the highest credit score possible.
Here are some key tips:
- Make sure you always make your credit card payments on time. This is one of the essential factors in determining your credit score.
- Try to keep your credit card balances low. Your credit score will be better if you have lower balances on your credit cards. Your credit utilization – the amount of debt you have compared to your credit limit – is another key factor in your credit score: the lower your credit utilization, the better.
- If you have any debt, try to pay it off quickly. This will help improve your credit score.
- Check your credit report regularly to make sure there are no errors. If you find any errors, dispute them immediately. Every year, you are entitled to a free credit report from each of the three major credit bureaus. Reviewing your reports regularly can help you catch errors and identify potential red flags.
By following these simple tips, you can give your credit score a boost and improve your financial standing.
Bottom line
While it’s technically possible to get a credit score of 850, it’s extremely rare. The vast majority of people fall somewhere in the middle of the credit score range, with scores in the 700s and 800s considered good or excellent. If you’re looking to improve your credit score, you can do a few things. First, make sure you consistently pay your bills on time. Second, keep your credit card balances low. And third, avoid opening new credit cards unless you need to. By taking these steps, you can slowly but surely improve your credit score over time.
