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Tips to Get a Near Perfect Credit Score

By Bank Deets · · Updated

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Your credit score affects a big part of your financial life. From the rates you’re offered on loans to the amount you’re able to borrow for a house, your credit score matters. It’s very hard to get a perfect credit score, but it is very possible to get a near perfect credit score.

Here are some key tips to help you along the way:

Whether you’re trying to buy a house, a car, or just get a better credit card, your credit score can affect whether you're approved and what rate you pay. For that reason, it’s incredibly important to understand credit scores, and actively manage your financial life to optimize your credit score.

Most credit scores, including the common FICO and VantageScore models, range from 300 to 850, so a perfect score is 850. You also don't have just one score: it varies by scoring model, lender and the credit bureau data used. Very few people reach 850, and it’s not important to worry about having a perfect 850, but you do want to get as close to a perfect credit score as possible.

Here are some tips to get your credit score as close to perfect as possible, in as little time as possible:

1. On-Time Payments

  • Set your credit cards to automatically pay in full each month, if your checking account can cover it. That helps ensure on-time payments and keeps you honest about your spending. Payment history is the biggest factor in FICO scores, at about 35% of the score.
  • Set your cell phone bill, utilities, mortgage and car loans to auto-pay each month if possible. Doing this extra step one time will ensure that you don’t ever miss a payment by accident. It’ll also save you on late payment fees, and postage.
  • If you ever have a late payment, call the company and ask whether they’ll waive the late fee. Payments are generally reported late only once they are 30 or more days past due, so paying quickly can keep a slip-up off your credit report. Some lenders will make a goodwill adjustment, but they aren't required to.
  • Never allow an account to go to collections. That happens when the lender hands the debt to a collection department or agency, or sells it to a debt buyer. A collection account can seriously damage your credit score for years.
  • Everyone has messed up and forgotten to pay a bill. The important thing is to fix the problem and maintain a good payment history. If you need to fix your credit due to missed payments or collections, consider visiting Curadebt for a free consultation.

2. Credit Utilization

  • Never spend beyond your means, and set your credit cards to auto-pay in full each month. That way you’re establishing credit history but keeping your credit utilization very low.
  • Consider asking for higher credit limits on your cards. A higher limit lowers your utilization if your balances stay the same. Many issuers let you request one online, but some run a hard credit check, so ask first. Issuers also raise limits on their own from time to time.

3. Age of Accounts

They say the best time to plant a tree is yesterday, but the second best time to plant a tree is today. The same holds for credit scores. The best time to have started a credit card is yesterday, but do it now and your credit score will benefit tomorrow. The length of your credit history makes up about 15% of a FICO score. That’s because lenders are looking for someone with a long term relationship with credit, and a long term payment history.

  • If you don’t have a credit card, consider a no-annual-fee card you can pay in full each month.
  • Don’t close old credit cards, unless they have an annual fee. Just make an occasional purchase and make sure they’re set to auto-pay.

4. Dispute any Errors in your Credit Report

You should regularly check your credit reports. According to the FTC, you can get your report from each of the three nationwide bureaus once a week for free at AnnualCreditReport.com. Make sure you’re taking advantage of your free credit report, and scrutinizing them to make sure that they are accurate. One of the easiest ways to get a near perfect credit score is to make sure that any mistakes on your credit report are removed.

If you see errors, you can dispute them for free with the credit bureau and the company that supplied the information. You don't need to pay anyone to do this.

5. Maintain a Healthy Mix of Credit Accounts

One of the factors in your credit score is the mix of the types of credit accounts you have. Those are usually lines of credit, like a HELOC or a credit card, and loans for a specific timeframe, like a car loan or mortgage. Credit mix makes up about 10% of a FICO score, and you don't need one of each type. Taking out a loan you don't need just to improve your mix usually isn't worth the interest.

Conclusion:

​A perfect credit score isn’t necessary, or even something that you are likely to be able to achieve. You can get a close to perfect credit score with these tips however. Always maintain a conservative financial position with emergency savings so you can avoid ruining your credit if you are confronted with an unexpected expense, or a loss of income.

With an excellent credit score, you’ll be well on your way to getting the best rates on loans, the best credit cards, and reducing the amount of money you spend on things like your mortgage and car payment. Good luck in your quest for a credit score as close to perfect as you can get!

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