How to get the Highest Possible Credit Score - Top 5 keys that everyone should know:
1. Understand how companies calculate your credit score. Most countries and agencies use payment history, types of credit and a ratio of debt to credit in order to calculate a credit score. If you want to get a perfect credit score, it's important to avoid collection accounts/judgments/tax leins, pay all of your creditors timely (including child support if applicable), and keeping your credit cards open with extremely low balances.2
2. Check for errors on your credit report. Mistakes happen and this could cost you your perfect score. Get a copy of your credit report and verify that the information pertaining to your accounts is correct. If you find an inaccuracy, make sure that you contact both the creditor and the credit bureau to have it removed from your account. Simply fixing inaccuracies can increase your credit score. If you find any inaccuracies, never call the credit bureau to file a dispute. Deal with the debtor directly and resolve it at the creditor level.
3. Keep your balances low. Credit bureaus look at the ratio of your available credit limits to the amount of debt you have in order to determine your score. It's best to have a high amount of available credit with a low debt. Try to use credit only for emergency expenses and pay off the balance as quickly as possible. This ensures a low debt to credit ratio. If possible, keep your debt below 25 percent of your total available credit ($10 balances yield the greatest score potential). When your debt surpasses 50 percent of your credit limit, it begins to reflect negatively on your score.
4. Make payments on time, every time. On-time payments are an important part of your credit score. A late payment will decrease your credit score and will affect it for several years.
5. Get the right mix of credit accounts. There are two types of accounts that may be listed on your credit report. It's best to have a mixture of these two. Revolving accounts, such as credit cards, have a variable monthly payment based on how much credit you use. Installment accounts, such as a mortgage, are loans for large amounts of money with a fixed payment each month.
Senior Loan Officer
Academy Mortgage Corporation
6411 Ivy Lane, Suite 300
Greenbelt, MD 20770
Maryland Lic. #: 141811