by Ginger B. Kelly, Esq. June 13, 2019
Most lenders aren’t looking for the most perfect clients they can get, they are generally looking for a good credit risk. A good credit risk is someone who they can verify will pay back the loan on time. Actually, perfect credit is a matter of opinion and truly depends upon the lender, not whether or not you are in the “800” club. When it comes to qualifying for a loan, or any other credit product, if your goal is to get the best interest rates and terms offered by your lender, typically you want a FICO score (a/k/a credit score) of around 760 or higher. This is about the golden mean for lenders and you will be offered the best rate the lender has to offer. Even if you have a score of 800, you’re still going to get the best deal the lender has to offer. So it really doesn’t matter whether or not your credit score is a 760, or an 850.
Things High Credit Score Achievers Do to Become High Achievers
OK, so you want to know what the credit elite are. They are borrowers with credit scores of around 785 or higher. According to a recent infographic published by myFICO, the consumer division of Fair Isaac, a FICO score of 785 or higher puts you in FICO’s top 25 percent of “High Achievers.” Setting your goal on a perfect 850 credit score is not necessary. However, if you want to know a few things high achievers do to become that way, this is it:
FICO High Achievers:
- Always, always, high achievers make their credit obligation payment on time every time. 96% of high achievers show no missed payments whatsoever on their credit reports.
- High achievers never max out their credit cards and they always keep low balances. High Achievers use about 7% of their available credit limits, no more. Using more than 10% of your available credit limit will drop your credit scores.
- They carry only about seven credit cards, which include open and closed account. If you want better credit scores, do not carry more than 7 or 8 credit cards or credit lines.
- Only about 4 credit lines cards have balances, this includes credit cards and also traditional loans. This means that high achievers don’t owe more than 4 lenders money at one time.
- High achievers rarely open new credit lines. The oldest credit line or credit card was opened about 25 years ago, on the average. High achievers have the most recent account opened about 28 months ago and the average credit card or credit line is 11 years old. This means the credit history counts, but it’s not everything. Even with no credit history, many lenders will loan money to new borrowers. Credit Unions are more flexible with new borrowers than traditional deposit banks.
Since I am an attorney who focuses on bankruptcy, I must tell you not to take out new credit in the months and days before talking to me about bankruptcy. This will cause more harm than it will good for you. Even so, I hope you can become a high achiever and achieve good credit scores. If you don’t have good credit scores and are in financial hot water, but you want good scores and a fresh start again, please give me a call. Perhaps I can help.
Attorney Ginger Kelly is now accepting clients in the Dudley, Webster, Sturbridge, Fiskdale, Southbridge, Saundersdale, Oxford, North Oxford, Charlton, Charlton Depot, Auburn, Leicester, Rochdale, Spencer, North Brookfield, Brookfield, East Brookfield, West Brookfield, Warren, Brimfield, Warre, Wales, Palmer and Holland. We can explore whether or not bankruptcy is the easy way out for you. Our office is a quiet and comfortable place to talk, and a free pot of coffee will be waiting for you when you arrive.
ABOUT ME: Attorney Kelly is an attorney in good standing, licensed to practice in both the Federal District and State Courts of Massachusetts and Rhode Island. Her law practice is focused on consumer debt, finance, bankruptcy and District Court matters. Attorney Kelly is experienced in both criminal and civil trial work. On a personal note, Attorney Kelly enjoys writing and other things, like conservation and agriculture. To find out more, visit our website, or call us at (508) 784-1444.
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