Tips To Achieving an Excellent Credit Score
In the world of credit scores, 850 is the lucky number and the perfect score. This is clearly not a result of accidents. This is not just achieved by making timely payments of bills. This requires strong determination and dedication to increase a credit score, the knowledge on how to increase it and the time. Here is a personal experience of a 23 year old associate who was able to obtain this excellent score.
Joshua Duvachelle, an associate editor of a nonprofit organization takes pride of his 736 credit score. At this very young age, he attributes this achievement to the way his parents raised him. That is, to be a person who practices strong work ethics and someone who knows how to save beginning at an early age. He shares having seen the way his parents enjoyed abundance and suffered scarcity. This led him to build a strong foundation for his financial future.
He took his knowledge of building good credit from working on full-time credit projects. He also studies financial magazines. At age 18, he opened his own credit card. Currently, he checks his scores monthly by subscribing to any of the three credit bureaus. Annually, he also obtains a free report from these three reporting agencies. Experian, Trans Union, and Equifax are the main reporting entities.
Mr. Duvachelle boasts of having a perfect history of payments. Through all these time, he experienced having an incorrectly sent account but he gave time to dispute it for many months until it was fixed. Even his student loan that amounted to $15,000 was all paid down until the last few amounts of the loan. This unpaid amount was purposely done to maintain an installment form of debt which credit bureaus consider in giving a high score. Aside from this, Duvachelle spends only about 30 to 40% of the total limit in his credit cards. He knows that this is the maximum amount he can consume to maintain his credit rating.
Expenditures that will exceed 40% of the credit limit will cause a decline in the credit score.
From this personal experience, it is easy to point out the factors that contribute to a good credit standing. This include proper financial management, constant checking of one’s credit reports, disputing errors, making timely payments, creating a perfect payment history, paying down debts, maintaining different types of loans and limiting credit card usage to a maximum of 40%.
More Credit Score Resources:
www.myfico.com/crediteducation/creditscores.aspx
www.nytimes.com/…/credit-scores/primerscores.html
Related posts on loans for people with bad credit:
- Is it Really Important To Have a Good Credit Score and Standing? The Importance of a Good Credit Score The common ways to obtain credit are simple. These are borrowing less, paying on time and keeping expenses controlled. Although these may sound very easy to do, they can be very tricky. Credit is…...
- Five Ways That May Decrease Your Credit Score Five Ways That May Decrease Your Credit Score People with low scores usually tend to pay higher interest rates on their loans. However, a lot of people are not aware of what actions are good or bad for their credit scores.…...
- 5 Tips on How to Increase Credit Score 5 Tips on How to Increase Credit Score Life would be much easier if you have a good credit score. However, it would be very difficult if you have poor credit score. So, here are five tips that might help if…...
- Factors That Affect Credit Score, How to Improve It Factors That Affect Credit Score, How to Improve It If you are planning to purchase something and your interest rates matter, then knowing your credit score is very important. If you have good credit score, then you might be charged a…...
- Can I Get a Home Loan if I have a Bad Credit Score? Credit Score Requirements are Now Stricter for Homebuyers Recent data shows that getting the best terms for a mortgage loan needs more than just excellent credit. Today, only individuals and families with exemplary credit standing can benefit from the historically low…...
Tagged with: bad credit • credit score • loan to value
Filed under: Credit Score
Like this post? Subscribe to my RSS feed and get loads more!