How to Earn the Perfect Credit Score

ByTop10.com StaffJul.17, 2018

This site is a free online resource that strives to offer helpful content and comparison features to its visitors. Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation impacts the location and order in which the companies (and/or their products) are presented, and in some cases may also impact the rating that is assigned to them. To the extent that ratings appear on this site, such rating is determined by our subjective opinion and based on a methodology that aggregates our analysis of brand market share and reputation, each brand's conversion rates, compensation paid to us and general consumer interest. Company listings on this page DO NOT imply endorsement. Except as expressly set forth in our Terms of Use, all representations and warranties regarding the information presented on this page are disclaimed. The information, including pricing, which appears on this site is subject to change at any time.

Earning the perfect credit score
You probably already know a bit about credit scores in today’s world of credit cards, car loans, mortgages and business loans. Credit scores can dictate if it’s possible to access loans, such as mortgages. They also determine what kind of interest rates and terms you’ll be offered, which can save (or cost) large amounts of money.

As more people look toward credit to finance expenses big and small, credit scores have become an important number, with more people using reputable credit repair companies to help make their scores great. 

It is estimated that American consumers owe $3.4 trillion in debt—or more than $16,000 on average per household. Much of that comes in the form of revolving debt, which refers to credit cards, lines of credit, home equity loans, and other similar loan options, which can improve your bottom line in the end by building solid credit and having more money on hand for necessary expenses. As people look to credit to help finance their lives, credit scores and overall creditworthiness has become a crucial sticking point. Can you qualify for the loan you want in order to get the funds you need?

Keep In Mind

As it becomes a central issue in consumer finances, more and more experts have devoted their time to discovering ways to improve credit scores and maintain them. Although the actual formula for calculating FICO scores, the most popular credit score measure, remains a highly guarded secret, experts have discovered that there are ways for consumers to improve their credit even without the inside scoop from FICO.

  • Non-Payment 

Lenders prefer to extend credit of any sort to customers who have a proven track record of paying their outstanding debts on time, every time. Everything from utilities to credit card debt can affect credit scores if left unpaid or are paid after the due date. Timely payment can reflect up to 35% of a person’s credit score. Moreover, non-payment affects credit scores over the long-term, making a potential borrower less trustworthy from a lender’s viewpoint.

  •  Credit Utilization

This takes into account how much of a person’s available credit is being used. For example, if someone has a total credit limit of $4,000, and uses only $400, their credit utilization is 10%. Having higher levels of credit utilization will always have a negative impact on your credit score. As such, authorities on credit scores agree that it is vital for consumers to be aware of how much of their credit they are using and to keep it as low as possible.

  •  Errors 

These happen pretty frequently, and in some cases can cause scores to drop by double digits. Today, there are many companies that can help consumers dispute these charges to have them removed, and this is an incredibly simple way to boost scores closer to perfection. Mistakes can happen because of misfiling, clerical error or identity theft, so it pays to keep your eye on your credit reports and know what the points add up to. 

Knowing is Half the Battle

While knowing about credit scores and how to improve them is important, many consumers still do not take the actions required to improve their standing with the major credit bureaus and creditors. However, it is easier today, with automated systems and credit repair companies, to improve credit, as services designed to help consumers stay on top of their credit scores are successful at taking the battle off of your hands. With the advent of credit reporting services, even from credit bureaus themselves, it is incredibly straightforward for consumers to stay one step ahead of lenders, and even simpler to raise scores toward the perfect credit score with top credit repair services.