How to Get a Perfect Credit Score and Tips to Maintain It

Credit Score

Everyone wants a perfect credit score because of the benefits it entails. But as you might have already guessed, getting one is not as easy as it seems.   

Don’t worry if you have a poor credit score based on the FICO ratings, we are here to help. 

What Is a Perfect Credit Score

Credit scores vary depending on the model used. In most cases, FICO scores are considered. And a perfect credit score of 850 is hard or even impossible to obtain if you ever had a debt. 

In terms of FICO score, your credit gradation is obtained by:

  • Excellent: 800 to 850
  • Very Good: 740 to 799
  • Good: 670 to 739
  • Fair: 580 to 669
  • Very Poor: 300 to 579

Why Credit Score Matters

Here are a few of the reasons why your credit score matters. 


It’s only safe to assume that you’d need a loan in the near future. And for that, you’d need to know how to get 850 credit score. The credit score is the metric of your past loan histories and how loan-worthy you are. As a poor credit score makes it tough to get a loan, a good or excellent credit score can make the procedure smoother. 

Credit Card Issuance

A good credit score is often the indicator that you aren’t a defaulter and can be entrusted with a manageable sum. 

It also lets you increase your credit card limit and have better rewards with lower interest rates. Keeping old credit cards open is also a good way to keep credit scores in check. 

Visa Applications

While it’s not very common to check your credit score for a visa application, countries like the USA and UK take it into account when proceeding with the application. A good credit score will make you eligible for a faster visa proceeding. 

Why Credit Score Dips

For you to have a better grasp of your credit score, it is necessary to know what affects it. So, below are some of the reasons why it dips. 

Late or Due Payments

As credit scores are the metrics of your payment history, late payments and due bills can cause it to plummet. As per FICO, it’s an important factor when calculating the credit scores of individuals. 

It’s unlikely that your credit score will take a huge irreversible dent if the payments are delayed a few days, but if you are reported as delinquent after 60 or 90 days of the due date, it can make your credit score fall further. 

Outstanding Debts

A business or personal loan, if not repaid in time, can be an influential factor in your credit score. 

Bankruptcy, financial lawsuits, tax liens, late payments are the most critical factors and it’s when a bank or lender places a derogatory item on your report. 

A derogatory report, even after intermediation, can affect your credit scores for a decade or beyond. But, it usually keeps wearing off with time. To pace the process, you can take help from affordable credit repair services. 

Credit Utilization Rate

Credit utilization rate is the utilization of your credit card throughout a predefined timespan. If you’ve maxed out your credit card due to a large purchase or a vacation the last month, it affects the credit utilization rate negatively. 

A sudden peak of credit utilization rate may not affect the overall score, but a constant utilization of over 30% will show significant changes in your score. 

The calculation is easy, if you have an $8000 max limit on your card and you’ve spent $4000 the previous month, the utilization rate now is 50%. 

Identity Theft

If you see a sudden dip in your credit score, it might be a frightening case of identity theft or a not so frightening case of clerical mistakes. In both cases, it’s recommended that you contact top-rated credit repair companies to sort the issue out and plan a recovery. 

How to Repair and Maintain Your Credit Score

Credit repair often isn’t possible without the help of credit repair companies. But you can take the below steps to ensure that your score doesn’t dip below a certain point.

Check Credit Scores Regularly

Checking credit scores regularly can safeguard you from further plummeting. A due bill that you missed, a monthly installment, or a closed credit card can make the score look bad and delay the next loan application. 

Information accuracy and error detection are other reasons why you need to check your score regularly. 

Fix Any Errors

If you see any discrepancies in your credit score, don’t neglect it. Do the needful before it can affect the score negatively. A discrepancy can be as small as a due bill or as critical as an unpaid loan that you never took, which can also be a case of identity theft and can plant the seed of bigger problems.

Pay Your Bills on Time

Unpaid bills account for more than 35% of all credit scoring categories. While it may be the major contributor, it’s not enough to achieve a perfect credit score.

A single late payment of 60-days is better than having multiple 30-day late payments. 

Consider paying the bills on time to start your journey towards the goal of 850. 

Fix Credit Utilization Rate

The credit utilization rate is responsible for the 30% of FICO scores. Like you, more than 32% of participants didn’t know about it.

If you use credit cards, keep a credit utilization rate of 30% or below to keep a better credit score.

The metric also takes account of all other loan types (personal, home, student, business, etc.) to calculate the credit score. 

Keep Old Credits Open

It may sound counterproductive, but keeping old cards and loans can impact your credit score positively. While that shouldn’t keep you from paying off the loan, regularly paying installments, timely payment cycles will improve the score. 

Review your old credit accounts and cards and check if any dues are left. If they do, fix those and keep the card open for the longest of time without utilizing most of the limit. 

As stated before, a low credit utilization rate is a positive indication of a credible borrower. 

The Bottom Line

Keeping a good credit score is very critical for your next loan and visa applications. If you are lagging behind the due dates, consider paying them off this month. To repair your credit score, it’s better to focus on paying the existing loans before proceeding to file for the discrepancy.

While it may not be possible to achieve the perfect score, a score of 700-800 is good enough.


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