While reports about the growing number of unemployed Americans with bad credit score have circulated recently, Experian’s director of public education says that there is no such thing as a perfect credit score.
Rod Griffin released a statement that the goal is not to get a perfect credit rating but to maintain points higher than 800. Apparently, perfection is not possible even when it comes to the economy and finance. Griffin added that he has never met anyone who has a perfect score.
To put it simply, the level of risk involved in using credit is enough reason why you can only have enough in as far as credit rating is concerned. This seems to be an encouraging thought for regular employees who wish to maintain a good score despite their debts.
But Getting High Credit Score is Very Possible
Griffin said that achieving a very high credit score is very possible. Getting more than 800 points should be the goal. Acquiring good rating is not rocket science. The idea is simple and that is you should pay your bills on time to avoid getting bad rating.
However, the report about the increase in unemployment is unsettling. Those who do not have jobs can barely pay their debts resulting to poor credit score. The cycle continues as employers use credit record as part of the hiring process. Those with bad credit usually do not get the job.
Griffin said that as far as the lenders are concerned, the focus is on how a borrower can manage his or her credit. If you are looking for a way out of debt and you do not have a regular job to do it, borrowing from bad credit lenders may be one of your best options. However, always take note of the risks involved.
There are people who manage and maintain good credit. Learning from them may help you pull yourself out of debt. For instance, Eric Holden from Westbury has a credit score of 825. According to him, paying off his credit card every four or five days instead of paying huge amounts each month helps him manage his bills. When you pay your bills on time your credit score increases.
Scheduling your payments once in a couple of days instead of paying huge amounts in a single month has many benefits as well. Aside from missing payments and increasing your score, this method also helps reduce the debt reflected on your credit report. Holden also added that using his card even on small purchases help him build his credit score.
Jess Reid from Baton Rouge has a score of 800. She schedules automatic payments so that she can make sure the bills are paid on time. She also makes a budget out of tracking her expenses. She makes sure she knows where her money is heading and how much she is spending.
Nancy Miller of Columbia currently has 815 points in her credit rating. According to her, the key is to maintain good relationship with her bank. Her accounts have been around for more than three decades and this helps improve her score.
Like Miller, Morris Armstrong of Danbury has maintained his 800 score by taking care of his financial accounts, which have been with him for 20 to 30 years. According to him, the age of an account is one of the most important components of maintaining a good credit score. This is why he advices fellow account owners to keep their accounts and use them occasionally.
With 800 points, Rachel Moshman of Vero Beach is currently enjoying the benefits of a good credit score. Other than peace of mind, she gets great interest rates, flexibility in her repayment plans, and the best insurance options.
Moshman said that she used to pay her bills with cash. However, when she started getting a card, she made sure that she pays her bills on time. She also remained cautious with her purchases especially when she is using her card.
These people prove that instead of letting money manage your life, you should be the one to take charge of your finances. With the economic climate, now is the right time to start aiming for a good credit score. Managing your finances will help improve your lifestyle as well.