Why You Don't Need a Perfect Credit Score

I most recently looked at my FICO score, which was 830. That made me smile because I write about credit cards and credit scores for a living. I'm just short of having a perfect credit score, which is 850, according to some sources.

And what's this? I have no interest in achieving the coveted 850 credit score. I'm content to be sitting here, in a state of mind that can only be described as Zen, with a score of 830.

You'll like what you're about to learn if you're sick of constantly striving for the best credit score. We'll talk about these subjects:

What Does the Ideal Credit Score Mean? Depending on the credit score version being used, a perfect credit score is defined differently.

The range for many FICO score versions is 300 to 850. The FICO credit score ranges are as follows:

Outstanding: 800-850. Excellent: 740-799. 
Good: 670-739. 
Fair: 580-669. 
Bad: 579 and lower.

A perfect FICO score of 850 requires a lot of factors to align.

A lengthy, excellent credit history is required. Each element that makes up your FICO score must be high for you to qualify: payment history (35%), amount owed (30%), credit mix (10%), new credit (10%), and length of credit history (15%).

Additionally, while 90% of lenders rely on FICO score models, 10% use alternative methods.

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