The Perfect Score: 7 Tips On Maxing Out Your Credit Score

bad credit score

If there’s anything the US school system has taught us, it is to care about getting the “perfect score.” As an adult, we’re not graded on a lot, but we are graded on our credit. Credit scores seem shrouded in mystery, so how does one go about getting the perfect credit score?

1. Hit the Books

Well, not really. But you will want to order a copy of your credit report and go over it with a fine-toothed comb. Check for errors or any discrepancies. Reporting any errors or inaccurate information and getting them cleared off your report will only help in reaching that high score you are aiming for.

2. Don’t Be Late

Nothing pleases creditors and lenders quite as much as an on-time payment. And this pleasure reflects in your credit score. A history of late payments won’t help your score perfecting efforts, it’ll do quite the opposite and your score will suffer.

3. Ace All Your Classes

To get a really great score, you can’t just be a good credit risk in one area, you have to focus on the whole picture. Having healthy mix of loans– from traditional loans and mortgage loans, to credit cards and student loans — and managing them wisely will solidify your credit status and show your creditors that you know how to manage your money to get that perfect score.

4. Moderation is Key

While you’ll want a diversity of credit options, too many requests for credit within a short period of time can hurt your score. There are exceptions when you’re shopping for a mortgage loan, auto or student loan to compensate for interest rate shopping, but for other types of credit applications like credit cards and personal loans, be sparing with your requests for credit.

5. Use It or Lose It

While teachers said this to get you to use your head, lenders want you to use credit. And you’ll have to do exactly that in order to build your credit score. Having a credit card isn’t enough if you don’t use it. To build and maintain your high score, use your cards — even if only to charge gas or dinner, and then pay it off at the end of the month. Otherwise, you face the chance that the credit card issuer will close the account for inactivity — and when you are working to build that perfect score, closing an account could backfire and hurt your efforts.

6. Be a Model Student

Don’t go overboard and max out all your credit cards and loans. Creditors like to see that you can use your credit responsibly, which means watching  your credit limits and keeping your charges as low as possible in relation to your credit limits. Keeping your credit utilization ratio at 10 percent or less is best, and  you’ll love the boost your credit score will see.

7. Get a Tutor

While most of the responsibility falls on your shoulders for getting that perfect credit score, there are educational services that help consumer monitor and manage their credit. Credit Sesame, gives you access to your free credit score and includes free monthly updates so that you can keep an eye on your credit and pinpoint any inaccuracies or unauthorized charges right away to minimize any damage to your credit and credit score.