Habits of the Elite 800+ Club
Have you ever wondered what you can do to join and maintain an 800+ credit score? Are you aware of all the benefits of being apart of the elite club of consumers? Building and maintaining an excellent credit score is may not be as hard as you may think, and with a little work you can join the elite club too..
A FICO score ranges from 300-850, with the 300’s being very poor credit and the 800’s+ being excellent credit.
If your score is in the 800’s, congratulations! The only work you need to do is maintain, maintain, MAINTAIN!
So how in the world do you maintain such a flawless score?
EASY!
1.) Pay your bills on time every month, and I mean ALL OF THEM.
Utilities, credit cards, medical bills, cable bills, etc., what do all of these have in common?
ANSWER: If left unpaid they are sold and bought by a third party collector, leaving devastating affects on your credit score. Even if you do eventually pay their balances, a late payment reported on your credit profile is just as damaging as a collection account!
2.) Keep credit balances as low as you possibly can.
Your credit card utilization ratio plays a huge factor in how high or how low your score might be, if fact it makes up 30% of your entire credit score. Ideally you should keep all your credit accounts below a 10% utilization ratio. For example – if you have a credit limit of $1k your balance should be no more then $100. Anything higher then 10% can devastate your scores drastically, and you will see a hefty drop!
3.) Long live your credit history!
The older your positive credit accounts, the better you’re looking to lenders! Compare to this, living in an apartment for 6 months rather then 6 years may make you a risky renter.. however vice versa, you look as an excellent tenant! You give the impression of a more reliable and stable tenant. The same goes for your credit accounts, the longer the credit history, the better your score, and the more glamorous of a consumer you prove to be!
4.) Don’t apply for credit, unless you know you’ll get it!
Applying for multiple credit cards will give you multiple hard inquiries, lowering your scores drastically!
Before applying for any type of credit, make sure your credit profile is cleaned up and ready to be evaluated!
I mean, you wouldn’t show up to a wedding as a best man in your sweatpants would you..?
The same analogy applies to applications for credit. Your score is a general representation of who you are and how reliable of a debtor you prove to be. Applying for too many credit cards can often make you look desperate lowering your chances of approval and lowering your scores!