In the U.S. credit scores for the American people have been steadily going up since the Great Recession. In 2018, the average national FICO score reached a milestone – 704.
While this is good news for the nation as a whole, if your credit rating is subpar, then you may be looking for ways to boost it. While there is no magic formula that will help you get a perfect score instantly, there are some tips you can use to help with this goal.
Keep in mind, if you don’t know what your credit rating is, the first step is to get your credit report. After that, you can start using the information here.
If you want to know how to get the highest credit score possible, you are in the right place. Use our tips to help your creditworthiness rise.
1. Eliminate Negative Marks
If you want a perfect credit rating, you can’t have any negative marks on your credit report. This means no late payments, no overbalance fees, and no other negative aspects that can cause your score to drop.
Keep in mind, if you have these now, you are going to have to wait for them to disappear and make sure you don’t accumulate anymore. This is crucial, as your payment history accounts for 35 percent of your total FICO score.
2. Become an Authorized User
Did you know you can actually piggyback on your parent’s good credit? It’s true.
You can ask to become an authorized user on an older, established credit card that has low credit utilization and a spotless record. Just by being associated with this card, your credit will receive a boost.
Keep in mind, it doesn’t have to be a parent. You can do this with another relative, friend, or even a co-worker as long as they are willing to take the risk.
3. Only Apply for New Credit if You Really Need It
Each time you apply for new credit – of any type – your score is hit with a hard inquiry. Too many hard inquiries can actually reduce your score.
If you absolutely need new credit, then try to find the right credit card. There are many options when it comes to credit cards for fair credit so be sure to do your homework before applying.
4. Keep Your Balances Low
You should try to keep your existing credit accounts as close to a zero balance as you can. The total amount of debt you owe makes up 30 percent of your total FICO credit score.
If your balances are high, start trying to pay them down. This is going to benefit your credit rating significantly.
5. You Need an Established Credit History
It’s important for you to have a well-established, long credit history. If you are new to credit, this is going to take time to get.
Just keep things paid and avoid requesting too much credit. This will help you achieve the high rating you want.
Getting the Highest Credit Score: Now You Know
If your goal is to get the highest credit score possible, be sure to use the tips and information here. Doing so will help you see a significant boost in your rating.
If you found the information here informative and want to know more, check out our blog on how to build credit.