Highest Credit Score

The highest credit score one can achieve is the magical FICO number of 850, which is a perfect score and the person that achieves this will find themselves being offered every form of financing and loan product imaginable. The highest scores usually range in the area of 720-850. This range is considered to be excellent credit. Anything above a 700 score is considered good. The goal of 700 or higher is key when looking for the best benefits of having an exceptional record. It is important to understand what these numbers are, how they are determined, and of course, how to improve them.

FICO stands for Fair Issac Corporation, the firm that created the formula for achieving the optimum score. The FICO score is based on the spending and bill paying habits of an individual and their overall debt loads. Nearly every financial decision and transaction is recorded and used to make up the highest credit scores one could hope for. All financial transactions are reported to one or all three nationally recognized reporting agency bureaus. Having the highest score from one agency doesn't necessarily mean that a person will have the same score from another agency. Most lenders and creditors average out the highest numbers from each agency.

The reporting bureaus make money from sharing these numbers with lenders, banks, creditors, etc. The way a FICO highest credit score is broken down is simple. Thirty five percent is attributed to having a record of paying bills on time, thirty percent for total balance on credit cards and other loans compared to total credit limit, 15% for length of history, 10% for new accounts or recent applications for financing, and 10% mix of credit cards and loans. The highest credit scores will result in an individual having a lower balance to limit ratio and a balance of revolving accounts with installment loan accounts.

Improving ones record is a matter of lowering balances on debts, stopping frequent history inquiries, paying all bills on time, and having a longer history (not closing accounts, even when they are no longer needed). Christians interested in improving their report to have the highest credit scores should seek out Godly Christian financial counseling to put them on a path to the highest credit score they can achieve. "Seek ye the Lord while He may be found, call ye upon Him while He is near." (Isaiah 55:6) Having a high score shows responsibility in finances, which equates to trust in our society today.

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