Less than 1% of US resident have a perfect rating. If this is your goal, you need a FICO score of 850.
Agencies assign scores based on your financial history. In particular, they evaluate how many accounts you have, the type of debts you owe, the age of your accounts, frequency of late payments, and the ratio of total debt to credit used. They also use several more factors that are less concrete. For example, how often you move, job stability, and your estimated income could change your score. Even the frequency of creditor inquires is considered.
A perfect score is not important. A good score distinguishes you as a good risk for additional credit. For example, a person who earns $ 1,000,000 a year, but exhausted all available credit sources and carries maximum balances, will not receive a perfect score. Another person, earning $ 50,000 and using less than 10% of credit available, could have a near perfect score if making all payments on time, has almost paid off a mortgage, and paid installment loans early.
Employers use scores to evaluate employment applications. Landlords review them before leasing. Insurance companies adjust premium rates depending on the level of responsibility they perceive. Government agencies refuse to hire anyone with a low score for sensitive operations. If these uses concern you, review your file with each of the three large agencies at least monthly.
One of the best ways to protect your career and financial stability is to make sure no one spreads false information. This small chore becomes much easier with the help of an online reporting service. These companies provide updates from all three large agencies for a cost of $ 15 to $ 25 per month. You should request price quotes for all services and options you believe are important. Also, inquire with the Better Business Bureau about complaints and complements. The best companies offer a free trial, knowing that a quality product sells itself without sales pressure.