In Search for the Perfect Credit Score

Is it realistic to dream about, or even obsess over the prefect credit score? If you have a high FICO score, 800+, does it really make a difference to have a perfect 850 score. Not really say the experts. Besides the perfect credit score is like the moon in the night sky, looks like it is so close, yet it is so far away.

Whether you have a credit rate of 800 or 820 it's probably not worth loosing sleep over to try to get to the perfect score. If you score is above 800 the you would be typically at the receiving end of the best rates available.

However if you would like to know what you can do to increase your credit score, here are some tips to start closing in the cap between your credit score and the perfect credit score of 850.

• Use only a small portion of your total available credit. If you have a credit limit of $10,000 but it is you have used $9,000 of that credit, it has a negative impact on your credit rating. As close to zero as you can be - or at least under 25% is the best place to be for higher credit score. Any balance over 50% and it will have negative impact.
• Use your credit in moderation. You may pay off your balances each month on your credit cards but if you made a purchase using your credit of e.g. $3000 and your credit was pulled that day, it would show a large balance for that day. Smaller amount would have the same kind of impact.
• limit the number of cards you have - having pockets full of credit cards is not much more than plastic in your pockets. When lenders pull your credit report they do not like to see a print out of dozens of pages - all filled with multiple credit cards you have. If you already have more credit cards than you know what to do with. You may close some, but take a look at which ones are the oldest ones and keep that/those. The longevity comes into play when adding up your credit score. Also resist the temptation to get each and every new card you are offered. If you already have a couple of credit cards, there is no need for new ones.
• Pay of monthly payments on time! Each and every payment. Periodically monitor your credit report to make sure the creditor has marked each month paid on time. If there are mistakes you can request a correction. Late payments, even just one, can really give your credit score a blow - even as much as 100 points.
• Keep an eye on your credit report. Do this periodically. Make sure all creditors have correct reporting. If you see mistakes on your credit report, report the mistake immediately and have it corrected.
• Only use credit for larger purchases, car, home, appliances and medical or other emergencies. Resist to urge to use the credit card/s for every single coffee purchase at the local coffee shop or a soda at the gas station.

It is not necessary to the perfect credit score but it is wise to have a good and solid credit score.