850 CONSIDERED A GOOD CREDIT SCORE

What is considered  GOOD CREDIT SCORE
At present 850 is considered to be a good credit score number. Your credit score is like a report card which gives the potential lenders and creditors an overview of the risk attached with you from a numerical measure known as the credit score.Very few people have this credit score.The highest possible credit score represents that your creditworthiness is extremely good,you have been very responsible towards your payments and have managed your finances very wisely.Your credit score has a direct impact on your ability as a borrower in terms of getting a loan,buying a car,employment,insurance etc.

In order to a good credit score number you need to understand what makes up a credit score and what steps you can take to raise it to a higher level

Your payment history-35%

This is one of the most important elements used in calculating your credit score.It indicates how regular you have been in the past in paying your bills on time.If your payment history has been clear and very regular ,your credit score will definitely be high and positive.

Your credit utilization ratio-30%

Another important component considered for determining your credit score.The utilization ratio shows the relationship between the credit that is available to you and the amount of credit that has been availed by you. When you excessively use your available credit limit it means that you are short of funds and are financially stressed. If you want your credit score to be towards the highest range, the percentage of usage of credit limit should be kept to a very low level below 20 percent of your credit limit. In other words, the credit retaining ability should be higher than the credit usage ability.

Length of your credit history-15%

The length of your credit history another major component indicates the duration of your credit card usage and the length of time you have been regularly making your payments on time.

New credit -10%

An important element for determining your credit score. When planning to restore your credit score, New credit can be used as a very clever tactic  as  part of your credit score improving plan. if you are Opening too many  new accounts and  if there a lot of inquiries by lenders ,it  can bring down your credit score drastically.

Types of credit used-10%

Another important element that determines your credit score. Try to keep a mix of revolving and other credit and keep  a lower percentage of usage of revolving credit- Below 10%.

Having 850  the highest possible credit score as your credit score will  definitely put you as a borrower in the superior bracket for the lenders. This high score can give many benefits to you as a borrower such as lower rates of interest on loans and at very attractive terms,Insurance be it home or car insurance-A good credit score number increases your chances of being insured, job opportunity-Your good credit score number reflects how well you manage your finances and this is considered as a basis for employment by employers as it shows to them that you will very efficiently shoulder the responsibilities of your job.

To sum it up, 850 is considered to be a very good credit score number and you can have it as your credit score by lowering balances on your outstandings, putting a stop to  too many inquiries pertaining to your credit history, making payments of all your bills on time and having credit history of a longer duration.