Credit Scores 2021: Get 800 Credit Score with 5 ingredients.
1st ingredient to a perfect 800 or higher credit score is 2 revolving credit cards.
What is a revolving credit card?
A revolving credit account sets a credit limit—a maximum amount you can spend on that account. You can choose either to pay off the balance in full at the end of each billing cycle or to carry over a balance from one month to the next, or “revolve” the balance.
How much revolving credit should you have?
For best credit scoring results, it’s generally recommended you keep revolving debt below at least 30% and ideally 10% of your total available credit limit(s). Of course, the lower your amount of debt, the better.
How long do revolving accounts stay on your credit report?
The account entry will show an account type of “revolving,” an account payment status of “closed,” and will no longer show a balance, if it was paid in full. If the accounts have been delinquent, they will be deleted seven years from the original delinquency date of the account.
What are examples of revolving credit accounts?
Credit cards and home equity lines of credit (HELOCs) are the two most common types of revolving credit. But you can find a complete list of examples in the table below.
Next, ingredient to a perfect 800 or higher credit score is a department store card.
Are department store credit cards good for your credit?
Just like other credit cards, store credit cards report your payment history to the major credit bureaus. When you make at least the minimum payment on time, this can help your credit score. If you can’t keep up with payments, it can hurt your score.
What are the best store credit cards to build credit with?
The best store credit cards to build credit with are the Amazon Store Card (5% back on Amazon.com with a Prime membership) and the Target Credit Card (5% back at Target and Target.com). Both require just fair credit (640+ credit score) for approval. And like all major store credit cards, they report to the three major credit bureaus every month. That will help you build credit history. But keep in mind that store cards can only be used at the retailer they’re affiliated with.
The only real “store card” for limited or bad credit is the Fingerhut credit account, which you can only use at the online retailer Fingerhut. As a result, you might be better off expanding your search beyond store credit cards to include secured credit cards and general-purpose credit cards for people with limited or bad credit.
Then the 3rd ingredient to a perfect 800 or higher credit score is an installment or personal loan.
How does an installment loan work?
An installment loan involves borrowing a set amount of money, which is then paid back over time through regularly scheduled payments. These are also referred to as installments. An installment loan may be either unsecured, where your signature is the only guarantee of repayment, or secured, where you offer collateral as a guarantee of repayment. CashNetUSA installment loans are unsecured.
The amount of each installment primarily depends on the duration of the loan, the interest rate charged for borrowing the funds and the initial amount borrowed, or the loan principal. The length or term of an installment loan is often a period of four or more months.
Do Installment Loans Build Credit?
Installment loans can help your scores if: You pay on time. Installment loans can help build credit if you are consistently paying on time and the lender reports your activity to one or more of the credit bureaus. You have only credit cards now. Your credit utilization drops.
Can Personal Loans Build Credit?
A personal loan can be a good way to build credit, but only if your credit history is already solid enough to get loan terms that aren’t too costly. If you have no credit history at all or credit that needs a ton of work, a credit-builder loan or credit card may be better options.
Finally the last ingredient to a perfect 800 or higher credit score is 2 revolving credit cards.
Do Authorized Users Build Credit?
Yes, authorized users do build credit. You can actually build a good or excellent credit score just as an authorized user on a credit card. When you become an authorized user, the account is added to your credit report, which means on-time payments by the primary cardholder will help you build good credit history.
Conclusion:
Getting a perfect credit score of 800 or higher is no big secret. However, maintaining that perfect credit score is the challenge.
In order to get an 800 or higher credit score you will need these 5 key ingredients.
You’ll need to revolving credit card accounts, one department store account, one personal or installment loan, and one aged authorize user.
That’s the secret formula. If you’re looking to restore your personal credit please check out 3waycredit.com
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