How To Get a Perfect 850 Credit Score in 5 Easy Steps!

Are you looking to improve your credit score? In the video “5 Easy Steps to Get a Perfect 850 Credit Score!” by 7 Figures Funding, Leo Kanell shows you how to achieve a perfect 850 credit score in just five easy steps. Having a perfect credit score is essential for getting approved for personal or business financing, and by following these steps, you’ll be well on your way to achieving that goal. The video also discusses the importance of building multiple credit accounts, setting up auto pay for your credit payments, managing revolving credit card accounts, strategically adding new accounts and inquiries, and keeping your credit cards open for a longer average account age.

In his personal experience, Leo Kanell explains how he used credit to secure creative financing, starting with a $40,000 loan that helped him build his first seven-figure business at the age of 25. However, he also acknowledges the mistakes he made during the 2008-2009 recession and emphasizes the importance of having good credit for success as an entrepreneur. While a perfect 850 credit score may not always be necessary, having a credit score of at least 750 or above can provide access to top financing options and lower interest rates. So, if you’re aiming for a perfect credit score or simply want to improve your credit, these five steps will guide you towards achieving your goal.

Get yours now

Step 1: Build Multiple Credit Accounts

To achieve a perfect 850 credit score, it is important to build multiple credit accounts. This includes having credit card accounts, auto loan accounts, and mortgage accounts. These are known as the “Big Three” when it comes to building a strong credit history. By having these different types of accounts, you are able to demonstrate your ability to manage different types of credit responsibly.

When it comes to credit card accounts, it is beneficial to have a mix of different types of credit cards. This includes both traditional credit cards and store credit cards. By having a mix of credit cards, you are showing lenders and credit bureaus that you can handle different types of credit responsibly.

Auto loan accounts are another important aspect of building a perfect credit score. By taking out an auto loan and making timely payments, you are demonstrating your ability to handle long-term debt responsibly. This can have a positive impact on your credit score, as it shows lenders that you are able to make consistent payments over an extended period of time.

Mortgage accounts are also crucial when it comes to building a perfect credit score. By taking out a mortgage and making timely payments, you are proving to lenders that you are able to handle significant amounts of debt responsibly. This can have a major impact on your credit score, as mortgage accounts are typically considered one of the most significant financial obligations.

It is also important to note that when it comes to building a perfect credit score, it is best to avoid taking out student loans. While student loans can be necessary to finance education, they do not necessarily contribute positively to your credit score. In fact, having a large amount of student loan debt can negatively impact your credit score. Therefore, it is recommended to pay off student loans as quickly as possible in order to minimize their impact on your credit.

Step 2: Set Up Auto Pay for Credit Payments

In order to maintain a perfect credit score, it is important to set up automatic payments for your credit cards, auto loans, and mortgages. Timely payment is an essential factor in building and maintaining a good credit score. By setting up auto pay, you can ensure that your payments are made on time, without the risk of forgetting or missing a payment.

Setting up automatic payments is particularly important for credit cards, as late payments can have a significant negative impact on your credit score. By ensuring that your credit card payments are made on time every month, you are demonstrating to lenders that you are a responsible borrower.

It is also recommended to use a money manager tool, such as myfigures.com, to help keep track of your payments and ensure that everything is being paid on time. This tool can help you stay organized and avoid any late payment fees or negative impact on your credit score.

Step 3: Manage Revolving Credit Card Accounts and Unsecured Lines of Credit

To maintain a perfect credit score, it is important to manage your revolving credit card accounts and unsecured lines of credit effectively. Revolving credit refers to a credit card or line of credit with a predetermined limit that can be used repeatedly as long as the borrower makes their minimum monthly payments.

When it comes to credit card usage, it is recommended to keep your credit card balances low, around 5-10% of your credit limit. This demonstrates responsible credit card usage and can positively impact your credit score. Paying down credit card balances regularly can also improve your credit score over time.

Unsecured lines of credit, such as personal lines of credit or personal loans, should also be used with caution. While these types of credit can be helpful in certain situations, it is important to manage them responsibly and not rely on them too heavily. Using unsecured lines of credit responsibly can help maintain a good credit score and financial stability.

Step 4: Strategically Add New Accounts and Inquiries

When it comes to building and maintaining a perfect credit score, it is important to strategically add new accounts and inquiries. While it can be tempting to open multiple accounts or apply for credit frequently, doing so can have a negative impact on your credit score.

When adding new accounts or applying for financing, it is best to do so strategically and only when necessary. Opening multiple accounts or applying for credit too often can raise red flags for lenders and credit bureaus. It is recommended to only add new accounts or apply for credit once a year or when there is a specific need for funding or financing.

By keeping new accounts and inquiries to a minimum, you can help ensure that your credit score is not negatively impacted. It is important to be mindful of how new accounts and inquiries can affect your overall credit profile.

Step 5: Keep Credit Cards Open for Average Age of Accounts

When working towards a perfect credit score, it is important to keep your credit cards open for the average age of accounts. The average age of accounts is a factor that contributes to your credit score and can have a significant impact.

By keeping your credit cards open for an extended period of time, you are demonstrating to lenders that you have a long history of responsible credit card usage. This can positively impact your credit score and show lenders that you are a reliable borrower.

It is important to understand the impact of the average age of accounts on your credit score. Closing credit cards can shorten the average age of accounts and potentially lower your credit score. Therefore, it is recommended to keep credit cards open, even if they are not actively being used, to maintain a perfect credit score.

Do Perfect 850 Credit Scores Exist?

The question of whether perfect 850 credit scores exist is a common one. The answer is yes, perfect 850 credit scores do exist. However, they are rare and achieving such a high score requires careful management of one’s credit.

A perfect credit score of 850 is the highest possible score on the FICO credit scoring scale. It represents a borrower with an exceptional credit history and demonstrates a high level of creditworthiness.

While perfect 850 credit scores may be difficult to achieve, it is important to remember that having a score in the upper range, such as 750 or above, is still considered excellent. Lenders typically offer the best financing terms and lowest interest rates to individuals with high credit scores, regardless of whether it is a perfect 850 score or not.

The Steps to Follow for a Perfect Credit Score

To achieve a perfect credit score, there are five key steps to follow:

  1. Build Multiple Credit Accounts: This involves having credit card accounts, auto loan accounts, and mortgage accounts to demonstrate your ability to handle different types of credit responsibly.
  2. Set Up Auto Pay for Credit Payments: By setting up automatic payments for credit cards, auto loans, and mortgages, you can ensure that your payments are made on time, which is crucial for maintaining a perfect credit score.
  3. Manage Revolving Credit Card Accounts and Unsecured Lines of Credit: Maintaining low credit card usage and paying down balances can improve your credit score, while using unsecured lines of credit responsibly contributes to a positive credit history.
  4. Strategically Add New Accounts and Inquiries: Adding new accounts and inquiries should be done strategically and only when necessary, as excessive new accounts and inquiries can negatively impact your credit score.
  5. Keep Credit Cards Open for Average Age of Accounts: Keeping credit cards open for an extended period of time helps maintain a high average age of accounts, which is beneficial for your credit score.

By following these steps and practicing responsible credit management, you can increase your chances of achieving a perfect credit score.

Should You Aim for a Perfect Credit Score?

While a perfect credit score is an achievement worth striving for, it may not always be necessary or worth the effort for everyone. In most cases, having a credit score in the upper range, such as 750 or above, is sufficient to access the best financing terms and lowest interest rates.

It is important to understand that a perfect credit score is not the only factor lenders consider when making financing decisions. They also take into account factors such as income, debt-to-income ratio, employment history, and collateral.

Striving for a perfect credit score should be viewed as a means to an end, rather than an end in itself. The goal should be to use credit responsibly to access financing and opportunities that can help grow wealth and seize business opportunities.

In summary, while having a perfect credit score can be beneficial, it is not the only path to financial success. It is more important to focus on using credit responsibly and strategically for long-term positive financial outcomes.

Get yours now

Using Credit for Business Opportunities and Investments

One of the key benefits of having good credit is the ability to use it for business opportunities and investments. While personal finance is important, credit can also be a valuable tool for entrepreneurs and investors looking to grow their wealth.

By having good credit, individuals can access financing options that can help fund business ventures, such as starting a new business or expanding an existing one. This can provide the necessary capital to invest in equipment, inventory, marketing, and other essential components of a successful business.

Additionally, credit can be used to make investments in real estate, stocks, and other financial instruments. By leveraging credit wisely, individuals can take advantage of opportunities that can generate significant returns and contribute to long-term financial growth.

It is important to approach credit for business opportunities and investments with caution and careful consideration. It is crucial to assess the potential risks and rewards and ensure that the investment aligns with your financial goals and risk tolerance.

Conclusion

In conclusion, building a perfect credit score requires a strategic approach and careful management of credit accounts. By following the five steps outlined in this article, you can increase your chances of achieving a perfect credit score.

However, it is important to remember that while a perfect credit score is a worthwhile goal, it may not be necessary or worth the effort for everyone. Instead, focus on using credit responsibly and strategically to access financing and opportunities that can lead to positive financial outcomes.

Ultimately, credit should be viewed as a tool that can be used to fuel business growth and investment opportunities. By using credit wisely and leveraging it to generate returns, you can build wealth and achieve your financial goals.

Get yours now

You May Also Like