Best Way to Achieve the Perfect Credit Score
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Best Way to Achieve the Perfect Credit Score
Many people ask how they can achieve the perfect credit score but few even know how a credit score is rated. A full 30% of your credit score is determined by your credit utilization. This means you cannot have a perfect credit score if your credit cards are charged up to the max or even close to the credit limit. For those who have charged up their credit card, finding solutions to reduce the debt will raise the credit score. The more you reduce the debt, the higher the credit score.
The goal in maintaining a credit ratio that will most help your credit score is to maintain a balance between 1 and 20% of the credit limit. A paid off credit card is not as beneficial to your credit score as a card with a small balance. The higher your balance rises, the farther you get away from achieving the perfect credit score. The good news is as soon as you lower your card balances, your credit score will bounce up.
The credit utilization factor in the credit score is the only component of the score that you can change almost immediately. By reducing your credit card debt to under 20%, you are one step closer to obtaining the perfect credit score that you dream of.
| Guru Spotlight |
| Sherril Steele-Carlin |
