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Achieving a perfect credit score or FICO score of 850 is possible, but it takes time and effort, and some experts question the necessity of such an endeavor. While it is important to carefully manage your credit and make sure you have an excellent score, any score from 800 up is considered to be excellent, and many lenders state that any rating above 760 will get you the same rates as a perfect score of 850. Of course, if you are striving for a perfect credit score, there are some steps to take. The first is to have a lengthy credit history, and the second is to be sure to pay all bills on time, and manage your credit cards strictly.
One of the steps to achieving a perfect credit score is to open a few revolving accounts early in life; some experts say you only need two or three revolving credit cards, while others state that you should have four to six. The amount you choose is up to you, but you should certainly have no more than six revolving credit cards, as well as one or two store cards. Similarly, it is best to open these credit cards through the major credit card companies, and then be sure to keep the balances low on them. Your debt to credit limit ratio goes into figuring your credit score, which means your debt should be kept low in relation to the amount you have to spend; typically no more than 35 percent of your available credit.
Negative items on your credit report will also prevent you from having a perfect credit score. These include major items like bankruptcies, or accounts that were sent to collections, as well as relatively minor items like late payments. In order to have a perfect credit score, you shouldn't have any negative items within the past seven to ten years. Installment loans are important to have as well, and these include items like a vehicle loan, a mortgage, or a home equity loan. Also keep in mind when you apply for loans that credit inquiries can have a negative impact on your credit score.
A perfect credit score, rather than a good or excellent credit score, is largely based on the length of time that you have been using credit. Generally, you cannot achieve a perfect credit score without at least 20 to 30 years of credit history on your credit report, as well as at least one account that has been open for most of that time. Getting a perfect credit score takes time and attention to detail, but it is certainly possible.