Credit Enhancement – Richard Moratti

Having a high or excellent credit score can basically buy you anything you want! Do you need a car? Easy! Need to move to a new apartment? Lightwork! A high credit score can even help you buy the house of your dreams. But what’s the highest credit score you can attain? With over two and a half decades of experience helping entrepreneurs as a financial coach and banking expert, I’ll show you the secrets of not only the highest credit score possible but also the pro tips to achieving it. You don’t want to miss this, because below I'll also show you the different factors that impact your scores so you can understand and raise them quickly. Generally, credit scores range between 300 and 850. So, what’s the highest credit score you can get? Let’s dive in! What’s the highest credit score? Getting the perfect or highest credit score will take a lot of time and so much work. The two most commonly used credit scoring companies in America are FICO and Vantage Score. VantageScore and FICO both have the same base, with the lowest score being 300 and the highest score being 850. Having a credit score of 850 is very difficult to attain. That’s why don’t get frustrated if you have good credit habits and still find your credit score below 850. An 850 credit score can only be achieved for individuals with 10-plus years of credit, perfect payment history, low credit utilization, and no recent hard inquiries. How to Read Your Credit Score: Credit Score Range Your credit score reflects how likely you are to pay back bills and credit obligations. So, when you analyze your credit score, you should try to consider it as lenders evaluate it. Of course, everyone wants to have an excellent credit score. But how do you know when you’ve achieved a high credit score? Keep in mind that scoring models may differ slightly. Fortunately, most of their label score ranges from “poor” to “excellent.” Who Determines Credit Scores? Two of the most popular credit-scoring companies, FICO and VantageScore, each provide the most popular credit-scoring models in America. Here's a quick breakdown on their credit score range: FICO Credit Score Range Poor: Less than 580 Fair: 580-669 Good: 670-739 Very Good: 740-799 Exceptional: 800-850 On the other hand, here’s VantageScore credit score range: VantageScore Credit Score Range Very Poor: 300-499 Poor: 500-600 Fair: 601-660 Good: 661-780 Excellent: 781-850 What Factors Impact Credit Scores? To further understand how to get the highest possible credit score, you should understand five of the main factors that influence your credit score. Here’s how FICO calculates your credit scores: Payment history: 35% Amounts owed, including credit utilization: 30% Length of credit history: 15% New credit inquiries: 10% Credit mix: 10% Advantages Of Having An Excellent Credit Score Generally, the higher the score, the more likely the person will repay their debts. And lenders love these types of individuals. They are attractive to them, and these potential lenders will often offer the best deals and terms. With an excellent credit score, you can expect to have: Lower interest rates. Potential lenders offer the lowest interest rates to people with the highest credit scores. Get approved for a higher amount. It’s also possible to get a higher limit on your credit card for having an excellent credit score. Housing Options. Have you found your dream house? Or maybe you’re looking to find a new apartment. A high credit score would make it easier for you to rent an apartment and be approved for mortgages. Get Utility Services: Higher credit scores will make it easier to get utility services, according to the Federal Trade Commission. Get A Phone: Great credit will make you less likely to have to prepay or pay a security deposit when opening phone accounts. Better Job Opportunities: Some companies sometimes look at credit reports as part of their background checks during their hiring procedures. How To Get A Higher Credit Score If you currently have a good credit score, you’re in a great place right now! But you can always look for improvements. Below, I’ve listed a few habits that people with scores of 800 and above share in common. A few changes in your credit lifestyle may give you a much better credit score. Some of the habits these people practiced included: Consistently paying bills on time: About 35% of your credit score makes up for your payment history. Late payments can damage your credit score for years. Keeping Credit Utilization Low: According to FICO, people with an 800 plus credit score usually use about 7% of their available credit. Avoid applying for unnecessary credit: Potential lenders conduct a hard inquiry when you apply for credit, temporarily lowering your credit. Keep Old Accounts Open: The length of your credit history is also one factor that influences your credit scores. People with high FICO scores have had accounts open for an average of 11 years. Review your credit reports: You can check out AnnualCreditReport.com to review your credit reports from the three major credit bureaus: Equifax, TransUnion, and Experian. What’s The Highest Credit Score: Summary Credit scores range from 300 to 850, and when people talk about the “highest” possible credit score, they usually talk about FICO scores in the 850 range. Getting a perfect 850 credit score is a great milestone. Achieving this high score may not be common, but it’s definitely possible. To get an 850 score, you must first fully understand what is considered when calculating your credit scores. The five main factors influencing credit scores are the payment history, amounts owed, length of credit history, new credit, and credit mix. Consistently paying your bills on time and keeping credit utilization low are a few ways to help you earn the perfect score. Getting a higher credit score opens up many options for the best credit cards, car loans, mortgages, and more.