In addition, you need to be careful with how you use credit cards-these consumers consistently pay off their balances and maintain a low credit limit to balance relationship, a.k.a credit utilization ratio. Collection accounts and late payments are non-existent on the credit reports of consumers with perfect credit scores. What you do need to do to earn a perfect score is to pay your bills on time, all of the time. And their average mortgage balance is $200,000, well below the average mortgage size, which is around $237,000, according to Experian. Many consumers with a perfect 850 credit score also owe outstanding car loans-suggesting they aren’t paying for them with cash. Around 25% opened one or more new credit accounts in the past year.Īs you can see, you don’t need to be rich to earn a perfect credit score.Collection accounts on credit report: 0.Average age of oldest account: 30 years.Total late payments on credit report: 0.Nonetheless, both FICO and Experian reveal some of the common credit characteristics that consumers with a perfect 850 FICO Score share. There’s no precise formula for how to earn a perfect credit score. Necessity or not, we spoke to several people, including Ulzheimer himself, who have achieved a perfect credit score to find out what’s involved. “Other than vanity, which I totally get, there’s really no reason to have an 850,” says John Ulzheimer, an Atlanta credit card expert and writer who formerly worked at credit bureau Equifax and credit score developer FICO. A very good credit score -think 760 and above-should be enough to qualify you for top borrowing rates. Also important are having access to sufficient credit to boost factors like your credit utilization ratio, according to credit experts. How do you become one of the credit score elect? It takes discipline and patience, including years, if not decades, of steadily paying your bills on time. But a small minority of Americans-just 1%-achieve perfection, the magical 850. Credit scores range from 300 to 850 and the average FICO Score is about 715. Your credit score is a big part of your financial life, potentially affecting what you pay for everything from a mortgage to auto insurance. Your Instagram page, your steak sear-and perhaps your credit score. There are plenty of things in life you want to be perfect.
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