Perfect credit scores
Getting perfect credit scores can be tough if you have made your share of credit mistakes in the past. This doesn’t mean that it isn’t possible, though. There are a few things that you need to know about your credit score that can help you raise it and maintain it high. Are there mistakes on your credit report? Are you paying your bills on time? Do you have an excessive or a very low amount of available credit? What are your past credit applications?
The first thing you should keep in mind is that credit bureaus may actually make a mistake when they calculate your credit score. Statistically, there is a mistake in 30% to 50% of the credit scores. They may use data from another person with the same name as yours to calculate your credit score. It’s good when this raises your score but it can bring it down as well. So, make sure that your credit report doesn’t have any mistakes that can have a negative impact on your credit score. The people with perfect credit scores don’t have mistakes on their credit reports.
What goes into the calculation of the credit scores? FICO’s (Fair Isaac Corporation) algorithm is a secret but the credit data they use in the calculation is available to the public. Paying your credit bills on time is the most important factor of your credit score – 35%. This is why when you are late with your bill, you may think that everything is good since there is a grace period (up to 20 days usually) but although you won’t be charged with late fees, a notification of your late payment may be sent to the credit bureaus. Late payments are the number one factor that can drastically bring perfect credit scores down. Even one late payment can have a negative impact on your credit score for a very long time.