We all became obsessed with our credit scores. It seems that we can’t miss a day without seeing a commercial telling how we can improve our credit. Since they are always on the mind, many are wondering if it is possible to achieve an ideal credit rating. Many have also asked what the definition of a perfect score is.
The good news is that an ideal credit rating is achievable, at least in theory. The bad news is that getting a perfect credit rating is almost impossible. Even people who, in all respects, did everything right, usually do not have the perfect result. A perfect credit rating is defined as 800 or 850 in some agencies, and even “ideal” often miss it. They may have paid all of their bills on time and never missed a loan payment, but also minor errors in your credit report may prevent you from getting this perfect result.
In the business world, it is generally understood that a credit rating of 775 or higher is usually considered an excellent score. With the same success, people with such high scores can be found. However, some people will try (mostly in vain) to reach the ideal 800. For our purposes, there is no reason to hope for such a goal.
You are best hoping to get your near-perfect account to pay off all your debts on time or in a relatively short period. You should have a mixture of mortgage payments, student loan payments, and other joint debts. Credit card companies love to see when customers, in particular, repay their mortgages in a short period. This activity will help you get close to 800.
A good credit score, of course, is an essential factor when applying for a loan, but an ideal score is not necessarily meaningful. Your credit score is just one of many factors that are considered when applying for this loan or other business venture. All the lender is looking for is someone they can trust to return them in a reasonable amount of time. If you can prove that you can do these things, then there is no reason for an ideal result.
In conclusion, too many people are obsessed with achieving an ideal credit rating. While taking care to increase your score, it is useful, useless to worry about becoming a perfectionist in this area.