Credit score can be affected by five factors. A high credit score can be achieved by disputing incorrect information and maintaining a clean credit history. Repairing credit history with too many public records and delinquencies can take years.
Credit score of 850
It might seem impossible that you can achieve an 850 credit rating, but it's possible. Experian found that only 1 percent of American adults have a score above 850. Maintaining a high score can be hard, but there are steps you can take that will help you improve it.
Hard inquiries
The number of applications that you submit every year has an effect on your credit score. These inquiries may reflect your credit shopping behavior and be relevant to potential lenders when assessing your creditworthiness. Multiple inquiries count as one in most cases, but the period of time will vary depending on which credit scoring model you are using. This period serves to allow you research and compare loans, without adversely impacting your credit score.
Age
A great way to boost your credit score is to build a good credit history. Although you won't be able to get to 850 overnight there are many things you can do over time to improve your credit score. Your credit history should be reviewed. Your age is only one factor that will affect your credit score. Average credit scores for people in their 20s are around 660. The highest credit score for people of that age group is 733.
Income
The 850 credit score club has a higher average credit card balance than the overall population, with an average balance of $32,872 versus $17,064. It's important to note that members of this club are mostly older. The highest percentages are in the silent and baby boomer generations. Generation Z and millennials account for only 25% of FICO(r) members.
Timely payment of bills
Payment history is a key factor in getting 850 credit scores. The longer your payment history is, the higher your score will be. It is important that you make all payments on-time and keep your accounts clear of any unpaid balances. A clean payment record is essential for mortgage or loan approval.
Good financial habits
Good financial habits are one of the best things you can do to improve credit scores. High credit scores are indicative of your ability manage your credit and debt. High scores are characterized by a strong credit history, impeccable payment records, and a healthy balance between unpaid debt and available credit. These people also only use a very small amount of their credit limit. As a result, lenders consider them to be less risky borrowers than people with lower credit scores.