It is important to establish your creditworthiness as early as now to get the highest credit score. If you live in the United Sates, you know how important a credit score is to your life. The score represents your worthiness as a borrower and also your character as an individual. This system was introduced by the Fair Isaac Corporation also known as FICO. Although there are different kinds of financial scores, the FICO score is probably the most widely used and popular credit scoring system in the United States. In the FICO system, the score range is between 300 and 850. The highest credit score is 850 while the lowest is 300. Everybody should aim for 850, which is not impossible as long as you know how to manage your finances well.

Getting the highest credit score is actually very easy. You should know how the credit score is broken down into several components. Your credit score is based on your payment history (35%), credit utilization (30%), length of credit history (15%), types of credits (10%), and credit inquiries (10%). As you can see, payment history is the biggest factor that determines your credit score. You have to make sure that you pay your bills on or before the specified due date to avoid having a delinquent account which can have a negative effect on your credit score.

There are some benefits of getting the highest credit score. Some of them are listed below.

– Having the highest credit score or even a good credit rating will help you get approved with your loans such as mortgage or auto loans. Unless you are going to pay for your house or car in full in cold, hard cash, you should first make sure that you have a good credit standing. Otherwise, forget about buying a house or a car and concentrate on improving your credit rating first.

– If you have a good credit standing, there is a chance that your loan application will be approved. But if you have the highest credit score or even an excellent credit score, you will also get low interest rates and premiums. Lenders and financial institutions love to do business with people who have an excellent credit rating. The high score only shows that the person is a responsible payer. People with excellent credit standing are considered as low risk based on their high credit score.

– If you are going to rent an apartment, it will be easier for you if you have a good credit score. If the landlord can see that you have poor credit score and bad credit history, he will either turn you away or ask for a huge security deposit.

– There is also a better chance at getting accepted to a job if you have a good credit standing. Most employers, especially if you apply for financial institutions, will look at your credit report and score. If they see that you have the highest credit score, they will see you as a responsible individual and will accept your job application.

Author Bio: Get your absolutely free credit scores from Experian, Equifax, and Transunion – the 3 major credit reporting agencies and see how well your credit is in seconds.

Category: Finances
Keywords: credit score,highest credit score,good credit