Important Steps to Obtain a Perfect Credit Score
Regardless of your credit situation, a perfect credit score is not beyond your reach. It just may take a little longer than others to get there. A perfect score falls anywhere between 850 and 900. A perfect credit score is not a necessary feat, but it would earn you some bragging rights, and it makes life easier when you’re applying for a mortgage or automobile financing.
Pay Your Bills on Time
Paying your bills on or before their due date is one of the fastest ways to increase your credit score. Late payments can shave many points from your score, so it's a good idea to always keep track of deadlines. If you tend to be absent-minded, apps such as Squeeze can help you remember due dates and monitor your finances. Consider consolidating your monthly bills to trim the number of bills you have. If you missed payments in the past, ensure that all of your accounts are current.
Allow Time to Pass
Obtaining a perfect score will take a while because high scores stem from the length of your credit history. A longer credit history shows that you have a record of being a trustworthy and reliable borrower.
Don’t Incur Too Much Debt
Accruing too much debt at once is a red flag to creditors, and the system will assess you as a risky borrower. For example, avoid financing a car and a boat within a short period of time. Such reckless borrowing is also a red flag to mortgage underwriters, which could render you unable to obtain a home loan. Take on debts slowly over time and borrow only when absolutely necessary.
Be Careful with Credit Card Debt
Many people fall into the debt trap via the credit card industry, but smart planning can prevent you from damaging your score. If you have a credit card:
Maintain a balance of 50 percent below the credit card limit
- Avoid making unnecessary charges
- Pay more than the minimum amount due
- If you’re establishing credit, use one credit card at a time for safe measure.
Check Your Credit Score Regularly
Experts suggest checking your score every few months. You’d be surprised how many people find mistakes on their report, so checking frequently is the best way to know whether your score is improving. If you find mistakes, contact the credit bureau immediately.
How Can Squeeze Help Me Obtain a Perfect Score?
Squeeze can help you budget and save money that could help you pay off your debts.