A good credit score plays a key role in one’s financial success. It is a 3-digit number, calculated from data of a credit report. Credit score is one of the main factors a lender always considers. It is to check whether you are eligible to accept your request for a mortgage, a credit card or a loan. It is only your credit score that determines what amount of interest rate you should be put up to pay for your mortgage.So, credit score plays a very vital role in many things. This proves what you are financially. And to enjoy the lowest interest rates, often you wonder what is the highest credit score possible. If yes, then read this article further to know.
Though there are many groups offering people to know their credit score, the one that is always counted is called FICO credit score. This dominates almost all the other models. FICO score was developed by Fair Isaac Corporation in 1987. From that time to until now, it has been a perfect standard for credit scores.
Based on myFICO.com (FICO score developers’ consumer website), about 90% of financial institutions in United States utilizes FICO score to process better decision-making about borrowers. FICO scores ranges from 300 – 850. So, higher is the number, lower is the risk.
Generally, a consumer encompasses three FICO scores based on 3 major credit agencies:
A consumer has complete rights to access TransUnion and Equifax. Only these 2 are tied up with FICO. Experian finished its agreement with FICO in the year 2009.
What Is The Highest Credit Score You Can Have?
A credit score of 720 or higher is considered a good credit score. However, if you want to qualify for a credit card, a mortgage or any other financing, you have to maintain high credit score. This will fetch you the lowest interest rate. The perfect and the highest credit score is 850. The closer you reach to highest score, better are chances to meet the criteria about anything you require. However, is it possible to reach the score of 850? or what is the highest credit score possible? – this is a common question most people look for. And here is the answer for it.
It is hard to reach the highest credit score, that is 850. But, 834 is the maximum credit score and is posible for anyone to attain it, claims a U.S. customer. Some consumers in Florida, New York, Pennsylvania and New Jersey have reached this score whereas some consumers who live in Minnesota and Kentucky could reach a FICO credit score of 831. Other states have consumers who have achieved 830.
Tips To Keep Up A High Credit Score
Here are some tips listed based on an interview held at CNN Money with the members who have 800 or more as their credit score.
- Make payments on time for all your bills
- Don’t maintain any derogatory accounts on your reports
- Keep long credit histories
- Try maintaining outstanding debts below 10 percent of your credit limit
- Check your credit reports & scores once in 3 months to fix flaws if any
- Extend your credit lines by opening further credit card accounts