How To Reach The Mount Everest Of Credit Scoring Of An 850 Credit Score In Three Easy Steps!

200 million Americans with FICO scores. However, only about 3 million, or 1.4%, have a perfect 850 credit score. FICO credit scores range from a low of 300 to 850.

Credit scores have become essential factors in getting approved for a mortgage or determining the interest rate you pay.

It seems as if Americans have learned their lesson from the financial crisis. They have finally taken their credit score serious. Thus, more Americans are seeing credit scores above 800, according to an article by Suzanne Woolley for Bloomberg.

How To Achieve An 850 Credit Score

Mess up your credit:

This may sound ridiculous. However, messing up your credit could help you achieve that perfect score in the long run. It’s not helping you in the short term. Applying for a multitude of credit cards will hurt your credit in the short term. However, these cards all work to create a longer average credit history if you keep the balances under 30% and don’t default on them. 

Pay down credit balance:

Americans also need to keep their balances between 5% to 30% is recommended for a good credit score. On consumer told Bloomberg he did this by making multiple payments a month. 

Don’t apply for new credit:

One factor people have with 850 credit scores is their pattern of when they apply for new credit. Many of them applied for several lines of credit at the beginning of their journey. They initially lost ground on their path to a 850 credit score. However, they didn’t apply for any new credit lines when they began rebuilding their scores. Instead, they applied to increase their credit limit on their existing lines.

Is It Worth it?

These things could help Americans achieve a perfect credit score. However, the question is, Is it worth it? Are perfect scores worth the time put in trying to achieve them? One expert says no.

The Bloomberg article also explains there is no incremental value to having a perfect score over a high score over 760 or 780. however, the one exception to this is in mortgage lending.