Let’s face it, now a days, a high credit score isn’t easy to achieve. Not only do you have to master the basics — maintaining positive payment history and a low debt to credit ratio, but in order to be part of the upper echelon, you must pay attention to details as well.
Knowing what characteristics those with the highest marks possess can lead you in the right direction.
Since the bulk of your credit score is determined by your payment history and the amount of debt you may or may not have currently on file, having a clean record and impressive payment history is key. Those with perfect credit scores use credit regularly while paying it off on time, every time. They also have a squeaky clean record. The credit elite have no liens, no bank repossessions, no settlements, no debt to speak of. Nothing!
Top credit scorers also have a diverse set of accounts. A careful balance of credit lines including a mortgage, a car loan and a few credit cards on file.
History, also, is paramount in determining your credit score. Typically, due to age, our parents stand a better chance of having a higher credit score than we do. Unless, of course, they have mismanaged their finances. It’s not necessarily your age, but the age of your oldest credit account on file that influences your overall score. You may want to keep that store charge card you opened up in college.
The number of credit inquiries on your record can also factor into determining your credit rating. While having large number of credit card inquires on file won’t dramatically decrease your score, it can keep you from joining the credit elite, especially if several inquiries are recorded over a short period of time. No matter what type of discount retailers offer, you may be best advised to refrain from opening up a bunch of store accounts.
To get more educational information on credit reporting and a complete breakdown of the credit scoring factors, contact DMCC.