The elusive perfect credit score. Do people actually exist that have attained the seemingly unattainable 850 credit score?

Or are they like leprechauns? Some people swear they exist, but those who live in the real world are doubtful.

Well, as it turns out, it is possible to attain a perfect credit score. Even if your credit is less than perfect, you can make it better and, one day, attain that perfect score.

Read on for a few tips to help you on your journey.

The Perfect Credit Score

First things first – is a perfect credit score important? It’s nice for being able to brag about your financial accomplishments, but it is useful?

Keep in mind that a 760 or more is generally considered excellent credit. As you’ll see when we get into the tips below, attaining a max credit score virtually requires you not to use your credit. That’s not helpful for most people, especially since the point of having a good score is to use credit.

So, a couple dings here and there won’t destroy your chances for getting that mortgage you want. Aim for 760 and above and you’ll be able to qualify for virtually any loan product you want.

You can use reliable websites to find out what your score is currently. Make sure there are no inaccuracies that are hurting your score. Check your report occasionally to ensure that things continue to stay correct.

Then, set a goal for improving your score. You can use these tips to help you improve.

1. Pay On Time

Make your payments on time, every time. This is the number one way to show your creditworthiness. Using credit isn’t necessarily bad (unless you use an exaggerated amount), but not paying it off on time is very bad.

Set a reminder on your phone. Set up automatic payments with your bank. Do whatever you have to do to make sure you always remember to pay on time. You can only attain a perfect credit score if you have a 100% on-time payment record.

Have you already made this mistake? Don’t worry. That doesn’t mean you can’t ever attain a perfect credit score. Negative items like missed payments have less impact on your score as time passes. After about 7 years they tend to drop off completely.

Start where you’re at and keep making those payments on time. Before you know it, your percentage of on-time payments will be smiling at you with a perfect 100!

2. Keep Balances Low

Credit reporting agencies also look at the total available credit that you have as compared to the credit that you’re using. Using more of your credit is seen as a bad thing since you’re maxing out what’s available to you.

However, that doesn’t mean that you can’t use your credit. Just try to keep the ratio under 30%. For example, if between all your credit cards and credit lines you have $20,000 of available credit, you will want to try to keep your average usage around $6,000 or less.

On that note, closing old accounts that you don’t use isn’t necessarily a good idea. The credit limits on those accounts apply towards your available credit, giving you more room to borrow on your active accounts without going over 30%.

3. Have a History

Aging usually isn’t considered a good thing – unless you’re anxiously awaiting your 21st birthday. But once you hit that milestone, most people don’t get excited about getting older.

However, when it comes to credit, getting older is a good thing. More years of good credit history translates to a better credit score.

To reach the coveted 850 you’re going to need about 25 years of credit history. If you’re just starting out, that can seem like a distant future.

But don’t worry. To get into the ‘very good’ range, you only need about 8 years. Keeping your score in the ‘very good’ range will still help you qualify for pretty much any credit you apply for. And once you’ve been at it for a while you can flash your beautiful 850 credit score.

4. Shop All at Once

One of the most frustrating things about trying to obtain a perfect credit score is that you feel like you can’t use credit. If a lender makes an inquiry during their research to approve your application, that hurts your credit.

Every inquiry hurts your credit a little more. So how are you supposed to shop around for a good rate?

The answer? Do it all at once. Different scoring software calculates things slightly differently, but almost all of them count all inquiries during a 14-day period as only one inquiry. Some will give you 30 days and others are even more generous with 45. But as long as you stick to 14 you can be reasonably sure you’ll only get one hit.

Keep in mind this may not always count for credit cards and that type of debt. But you can take advantage of this for home, student, and auto loans.

Remember, these inquiries drop off after a year or two. As long as you don’t make a habit of applying for new credit, they don’t affect your score a lot.

Don’t be afraid to use credit just because asking about it will affect your score in the short term. Responsible use of credit over the long-term is one of the best ways to raise your credit score in the long run.

Improving Your Credit Score

We hope that this information has given you a bit of financial insight into how to attain that perfect credit score. Remember, attaining perfect credit is a marathon, not a sprint. Set up the good habits we’ve mentioned here and keep at it. Don’t be discouraged by the occasional setback.

Over time, your score will climb. Remember, once you’ve made it to at least 720 you’re doing well!

For more useful tips, be sure to check out our blog!