How to Get a Perfect Credit Score? (Best Guide)

Having a good credit score in the United States is essential for every person as anything from opening a credit card to financing a car requires you to have a good credit score. But if you’re an overachiever and want the perfect credit score, how do you get it? The best credit score that a person can achieve is an 850-credit score. However, even if you achieve an 850-credit score, keeping a perfect credit score Is something you will need to continually work on as your credit score will fluctuate as new information is added to your credit report. Getting a perfect credit score is not an easy task as only 1.5% of people ever achieve a perfect 850 credit score. That said, we will discuss how to get a perfect credit score in much detail below.

How to Get a Perfect Credit Score?

To get a perfect credit score, your credit report will have to be absolutely flawless. People who have an 850-credit score have done well In all of the following areas:

  • Pay every single bill that you have on time (no missed payments) – Not having any missed payments on your credit score Is the single most important factor in achieving a perfect credit score. Payment history accounts for 35% of your credit score, so It’s very important that you pay all of your bills on time and consistently do this for years.

  • Have a lengthy credit history (preferably over 20+ years) – Having a lengthy credit history Is also Important to achieve the perfect credit score. This Is so because the average age of your accounts makes up 15% of your credit score, so having old accounts In good standing Is essential to achieving the perfect credit score. The lengthier the age of you’re accounts, the better for your credit score. Many of the people who have reported earning a perfect score have had flawless credit history for about two decades. So, if you’re just starting to build your credit, you have a long way ahead of you to earn that top score.

  • Keep your credit card balances low (below 10%) – Maintaining low credit utilization Is essential to obtaining the highest credit score possible. This Is so because credit utilization (how much of your available credit you’re using) Impacts your credit score. The lower your credit utilization, the better your credit score. As a rule of thumb, you should always try to keep your credit utilization below 30%, but since you’re going for the best credit score, try keeping It below 10% to ensure that this factor Is In your favor.

  • Have a high total credit limit – Having a high credit limit allows you to keep your credit utilization low. For example, If you have a $100,000 Credit Limit, and you only use $5,000 of your available credit (5%), you will be keeping your credit utilization below 10%, for the best chances at reaching the maximum credit score.

  • Have a good credit mix of credit – credit cards and Installment loans – Having a good mix of credit accounts makes up 10% of your credit score. To maintain a good credit mix, you should have things, such as credit cards, a home loan, an auto loan, a department store card. The more diverse your accounts, the higher your credit score will be.

  • No collection accounts, foreclosures, repossession, or other derogatory items on your credit report – If you have a collection account or other derogatory mark on your credit report, you can kiss getting a perfect credit score goodbye. Derogatory marks can decrease your credit score by over 100 points, so If you want a perfect credit score, you should avoid anything that can result In such a mark from being placed on your credit report. Paying all of your bills on time Is essential to avoid these marks. This Is so because If you don’t pay a bill, It can be sent to a collection agency, which will place a collection account on your credit report, causing significant damage to your credit score.

  • Keep little to no hard Inquiries on your credit report – Hard Inquiries can lower your score and If you’re shooting for the perfect score, you need to keep them to a minimum. A single Inquiry can keep you from the best score. So, while seeking to attain the best score, you should avoid applying for new credit cards and loans because each time you apply, a hard Inquiry Is placed on your credit report, lowering your credit score. So, keep new applications to a minimum, or avoid them In the first place.

CSP Note: Achieving and maintaining a perfect credit score Is not an easy task. You must have an Impeccable and lengthy credit history to obtain the perfect credit score. For some people who are just starting to build credit, It may be very difficult to get a perfect credit score as you do not have the required credit history. One way to get a perfect credit score Is to have a parent or loved one add you as an authorized user on an account with flawless credit history. Upon being added as an authorized user, their entire credit history for that account will be added to your credit report, boosting your credit score.

Do You Need a Perfect Credit Score?

You do not need a perfect credit score to qualify for the best terms. If you have a credit score that Is above 740, you will likely qualify for the best terms for credit cards, home loans, and car loans because your credit will be considered as excellent by lenders and banks.

Credit scores are merely a tool that lenders and banks use to determine the risk you pose to them when you borrow money. The difference between an 810 credit score and an 850 credit score will not get you a better deal when It comes to thing such as the Interest rate on a credit card or on a car loan because both scores are within the same bracket of exceptional credit scores and will, therefore, qualify for the same deals.

You should not obsess over having the perfect credit score because you’ll reach a point where having a perfect credit score will not benefit you. So, don’t go opening new accounts for the mere purpose of Increasing your credit score.

Getting the Perfect Credit Score

If you’re trying to get a perfect credit score, It helps to know how the credit reporting system works. The credit reporting bureaus collect Information from the banks and lenders with which you have accounts. The credit reporting bureaus then apply a mathematical algorithm to the Information In your credit report to come up with a credit score for you. Here Is how your credit score Is calculated:

  • 35% of your credit score depends on your payment history (I.e., do you pay your monetary obligations on time? Are you late? or Do you not pay at all?).
  • 30% of your credit score depends on the length of your credit history.
  • 15% depends on the length of your credit history
  • 10% depends on the mix of credit accounts that you have
  • 10% depends on new credit accounts

For the best credit score, you need to check all the boxes we just mentioned. This means that you have to have open accounts, you need to make timely payments, you need to keep the balances on your accounts low, you have to maintain a variety of open credit accounts, and you have to do this for a long period of time to achieve the perfect score.

Periodically Check Your Credit Score

If you’re going after the top credit score, you know how Important It Is to periodically check your credit report to ensure that nothing negative Is pulling your credit score down. You may do everything right to achieve the highest credit score, but a derogatory mark, such as a collection account may have been mistakenly added to your credit report. The only way to find out is to pull your credit report and check to see if something negative is on there. As a rule of thumb, you should check your credit score at least once a month. If you find any inaccuracies on your report, you should dispute them through the credit report agency reporting the mistaken information.

Credit Score Planet Frequently Asked Questions

1) What Is the perfect credit score?

A perfect credit score Is an 850-credit score. Anything above 800 Is exceptional, but the best credit scores a person can achieve Is an 850-credit score.

2) Does anyone have an 850-credit score?

Yes, approximately 1% of the U.S population has a perfect 850 credit score.

3) What percentage of the population has a credit score over 800?

Approximately 20% of the U.S population has a credit score over 800.

4) How can I get a perfect credit score In 2020?

You can get a perfect credit score In 2020 and beyond by following the tips that we have listed above.

5) How do you get an 850 credit score?

You can get a perfect 850 credit score by following all of the tips that we have listed for achieve a perfect credit score.