How to Get an 850 Credit Score

Credits scores can range from 300 to 850. It is possible to reach a score of 850, but it can take some time to improve your score. A good credit score is important because it will keep you from paying high interest rates on loans. A poor credit score might prevent you from finding employment. To get a perfect score of 850, you need to establish a positive payment history and to make sure your credit balance is not close to your credit limit.

Instructions

1

Get a copy of your credit report from the three credit bureaus: TransUnion, Experian, and Equifax. You can get a free credit report once a year from AnnualCreditReport.com. Look at your report to see whether it shows a history of late payments or going over the limit on any credit cards.

It is also important to review your credit report to make sure your identity hasn't been stolen.

2

Get your credit score from myFICO.com. There are three scores you can purchase, but "there's no need to pay for all three scores unless you are buying a mortgage," according to financial adviser Suze Orman. Knowing your score will show how far you are from 850.

3

Pay all your bills on time. This is crucial to getting a perfect credit score. Thirty-five percent of your credit score is based on your payment history. If you have a hard time remembering to pay your bills, try to set up an automatic bill pay every month with your bank account so that you never miss a payment.

4

Lower your overall debt. Your debt-to-credit limit ratio is a big factor in your credit score. If you have a total limit of $10,000 on all your credit cards and you currently owe $1,000, your debt-to-credit ratio is 10 percent. If you owe $2,000 and your credit limit is $10,000, your ratio is 20 percent.

The lower the ratio, the higher your credit score. The only way to decrease your ratio is by lowering your balance. Make it a mission to pay off your balance.

5

Avoid applying for a lot of credit at once. This can lower your credit score. Have two major credit cards and two store cards.

6

Establish a credit history. People who have perfect credit scores have a long credit history. The longer you can show that you can pay your bills on time every month and that you can keep your debt-to-credit ratio low, the higher your score will be.

7

Counter any negative items, such as collections, that are in your credit reports. If you have a collection on your account, take action to get it removed. Contact the credit bureaus and dispute any unwarranted items in your report. You can dispute negative or incorrect items online.