Getting An Excellent Credit Score
It is a good idea to improve your credit score as much as you can because you will benefit financially from having an excellent credit score.
It is a good idea to improve your credit score as much as you can because you will benefit financially from having an excellent credit score. What makes an excellent credit score? The FICO rating system rates 760 as an excellent credit score. How can this extremely good rating be achieved?
The best way to give your credit score a boost is to always pay your bills when they are due. Never allow yourself to let a payment slide, even for a day or two. If you make a late payment on a credit card bill, even one day overdue will cause a negative impact on your credit score.
Those people who have excellent credit scores do it by paying their bills promptly. Being prompt in your bill payments is one way to start making a big improvement in your credit score, even if you currently have poor credit.
Have a variety of credit
Having a variety of different types of credit can help you get perfect credit scores. Having too many credit cards will not be helpful in creating a good credit rating. It would be better to have just a couple of credit cards, a car loan, and a house mortgage. This kind of credit variety will produce a better score.
Do not overuse revolving credit such as credit cards. When you use your credit cards, never use up to the maximum of the credit limit allowed. Using the maximum of your credit card limits will show that you do not use credit wisely and therefore your credit score will go down. To improve your credit score, keep your credit use below 30 % of the card maximum. It would be even better to keep your levels lower than that.
Time has a big effect on credit history. When you are young, it will take several years of using credit wisely to create an excellent credit score. Being careful in creating a good credit history will pay off big when it is time to apply for a big item such as a mortgage for your first house.