Your Game Plan for Getting the Highest Credit Score Possible

Can you get that elusive, perfect credit score? Find out now.

A high credit score can make or break your qualification for just about any line of credit, including a credit card, car loan or mortgage. If you want to borrow money, you need to prove you can handle credit and pay it back on time. Think of every time you pay your debts as a touchdown and you’ll be in the right frame of mind to set up an effective financial game plan.

Lenders use dozens of credit scores to measure consumers’ creditworthiness. Here are the ranges of the main credit scores consumers can check:

  • FICO: 300 to 850
  • VantageScore 3.0: 300 to 850
  • Experian PLUS Score: 330 to 830

Do you know your credit score? You should, because it has a significant impact on your financial standing. Keep reading to find out how to get the best credit score you can.

What Is a Credit Score?

So what is a credit score, exactly? Your credit score is a measure of how trustworthy you are as a borrower, and it’s calculated by using data that’s collected by the three major credit bureaus: Equifax, Experian and TransUnion.

Federal law entitles you to receive a free credit report — from each credit bureau once every 12 months — which can help you ensure all of your information is accurate and up-to-date. In addition, some credit card companies now enable customers to view their free credit score online as part of their available account information.

Explore: 6 Credit Report Red Flags You Don’t See — but Your Lender Does

How Your Credit Score Is Determined

In general, there are five elements that factor into your credit score. Each is weighted differently. Here’s how your credit score is determined:

1. Payment History: 35%

Payment history is basically a snapshot of your reliability as a consumer and borrower. It includes your credit card, car and mortgage payments. It also shows whether you have defaulted on other bills, had an account sent to a collection agency or been sued for delinquency. Bankruptcies and foreclosures fall into this category, as well.

2. Debts: 30%

The next largest factor in determining your credit score is how much credit you’ve been extended versus how much you’re using. Credit bureaus use something called a credit utilization ratio to measure whether you’re using too much credit — and your ratio could affect your score.

Keeping total balances owed at 7 percent of your total revolving credit limit gives consumers higher scores, according to Tracy Becker, credit expert and president of North Shore Advisory, a credit score restoration and education company.

3. Length of Credit History: 15%

The longer your credit history, the more reliable you look as a borrower. Keeping an old line of credit open and active shows you are reliable.

4. Types of Credit You Use: 10%

If you can successfully manage different types of credit, your credit score will reflect that. Becker explained that having many old and active accounts, including installment credit, revolving credit, mortgages and lines of credit will provide you a healthy mix of credit types.

5. New Credit You Take On: 10%

Applying for and/or opening too many lines of credit at once raises red flags for credit bureaus and lenders. If you’re shopping around for the best loan rates and terms, however, a few inquiries in a short period of time typically won’t be detrimental to your score.

What Is a Good Credit Score?

Rather than push for the highest credit score, aim instead for a credit score range. If you have a score of around 780, you’re in the end zone: You’re likely to receive the same interest rates and preferred treatment that you would get if your score was a perfect 850.

Being in the 800 Club is something to brag about, so if you want to reach for the stars, go for it — but don’t let backfield emotions lead the way. Although it’s possible to obtain the perfect credit score, you don’t need it to receive the top benefits. Your score is not entirely in your control, so keep this in mind and you can focus less on striving for perfection and more on enjoying all the things your responsible actions have afforded you.

Find Out Now: This Is the Credit Score You Need to Buy a House

What Is the Highest Credit Score You Can Have?

Even among the most disciplined consumers, few achieve the highest credit score possible. In fact, less than 1.5 percent of Americans are able to attain an 850 credit score, according to FICO. Even then, credit scores change all the time, so it’s not likely that any one person is maintaining an 850 FICO credit score — or Experian credit score or any other score — 100 percent of the time.

How to Get the Highest Credit Score Possible

Don’t settle for an average credit score. A really high score isn’t impossible to get. The answer for how to improve your credit score — and how to get an 850 credit score — is in these seven steps you can take right now:

  1. Always pay your bills on time.
  2. Eliminate derogatory accounts from your credit report if possible.
  3. Keep old accounts open to maintain a long credit history.
  4. Keep your outstanding revolving debt to less than 10 percent of your credit limits.
  5. Maintain a diverse mix of credit accounts.
  6. Extend credit lines by opening additional credit card accounts within reason — but, again, keep your balances low.
  7. Be sure to check your credit score — and your credit report — every three months and report any errors.

Improving your credit score is a matter of building healthy financial habits and keeping your debt-to-income ratio low. Katie Ross, education and development and housing manager for American Consumer Credit Counseling, a nonprofit that educates consumers on identity theft, credit, debt and budgeting, offered a few key tips for consumers looking to improve their credit scores.

You should avoid using your credit card if you’re in a financial bind. “Finance charges and other fees will add to your debt burden,” Ross said.

Don’t get into the habit of making minimum payments. “If you pay only the minimum, it will take a long time to pay off your debt,” said Ross. “For example, if you owe $5,000 on an account with 18% APR, making 2-percent payments will take over 44 years to pay off. Also, you will have paid $12,431 in interest.”

Make your payments on time, every time. Paying off your debt might be difficult, but avoiding payments won’t make your life any easier. “Bad problems get worse fast when you have late fees and higher rates to pay during financial difficulty,” Ross said.

Finally, don’t max out your credit cards. “A credit card account close to its limit will cause a big drop in your credit score,” she said. Maxing out your account also puts you in danger of getting hit with over-limit fees.

Up Next: 7 Secret Perks You Enjoy If You Have a Good Credit Score

  • Ben

    I thought it was interesting that your credit score is based on new credit. So if you have a habit of applying for new credit it could affect your score in a major way. Say if you have a card for 10 years and get a second credit card, they take your average length of credit history and grade you based on that.. meaning since you only have 2 cards your average credit history will only be 5 years and not 10. That is one of the main reasons why on my credit report it says I lack credit history even though I have a few cards that are 8 and 10 years old, but have a bunch of newer stuff within the past few years. My credit score = 790! 🙂

  • GBR Casey

    Not too shabby!

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  • big meech

    My credit score is 320. I don’t really care because I sell drugs and pay for everything in cash .

    • johndoe211

      you silly boi,

    • Nancy Neff Byrd

      You are now being investigated. lol

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  • nitemarejim

    “The closer you are to the perfect credit score of 850, the better your chances are of qualifying for just about anything you want.”

    BS. Anything about 780, I think, and the banks treat you the same. All you get are bragging rights.

    The secret to a good credit score is delayed gratification.

    I don’t buy stuff just because I want it. I don’t buy anything unless I know I can pay for it immediately. I plan to buy stuff. I pay off my cards every month. I’d use cash or check, but I like my free rewards. I only buy new clothes when the old stuff is raggedy. I only buy good used cars. I wait for sales to buy stuff, if I can.

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  • m

    We recently have reached the 850 FICO score. Important thing is to pay
    your bills on time. Don’t keep opening new cards(that hurts you). Keep
    cards open that have history. Closing them will hurt you. Be
    responsible. Watch your credit for mistakes.

    • Wow, impressive!

      • m

        Thank you,Casey!! I worked hard at getting our balances paid and not running up charges.I was able to achieve a 850 score for both my husband and myself. The important thing is to always pay your bill on time. Sometimes, I would pay multiple times a month to bring the balance down. Online banking and credit card sites keep me on top of our finances.

        • thunder666

          It is said on this site that the highest credit score ever was 834, so how can you and
          your husband have 850? You better check again.

    • Edster

      Impressive you’ve given every piece of advice EVERYBODY else has said….