A friend emailed me the Wall Street Journal article, One Man's Attempt to Get a Perfect 850 Credit Score. It resonated with me. As I have shared in the past, I worked hard to earn a perfect credit score myself.
So yes, it is possible to have a perfect credit score, and here's how to do it.
Steve Michell, a 52-year-old engineer from Texas, embarked on a five-year quest to achieve the elusive perfect credit score of 850.
Like me, Mitchell had an impressive score in the 840s and was determined to crack the code behind the proprietary credit scoring algorithms used by FICO, Equifax, Experian, and TransUnion.
After numerous attempts, Michell discovered that the key to reaching 850 was maintaining a tiny balance—between 0.5% and 1.5% of his available credit—reported at precisely the right time of the month. I used a similar strategy by paying the full balance on all our credit cards daily.
Credit scores influence rental applications, insurance premiums, and even dating prospects. Tools like Credit Karma and banking apps have made monitoring scores more accessible, but the algorithms remain shrouded in secrecy, leaving even the most diligent consumers frustrated by their unpredictability.
Experts note that while keeping credit utilization low—around 1%—can optimize scores, no single formula guarantees perfection. However, there are credit-building strategies that experts agree are effective at building and maintaining a high credit score.
Here are the credit-building strategies I used.
1. Never miss a payment
Credit is destroyed by late payments. My credit was already excellent because I hadn't missed a payment. To work together, both spouses must understand who pays the bills.
2. Increase your credit limit
Whenever a card did not run a credit history, I requested a higher credit limit. Having a hard inquiry every now and then is relatively harmless, but I couldn't afford any points lost if I wanted perfect credit.
Although I did not increase my credit card transactions, I had higher credit limits, which helped lower my utilization rate. For instance, if I ran a $100 transaction for groceries with only a $1,000 credit limit, my credit utilization rate would increase by 10%. If my credit limit were $10,000, it would push it up by 1%.
Credit cards are revolving credit, which appears to contribute more to credit scores than installment loans (e.g., car loans), provided that you don't over borrow.
3. Do not close old accounts
Since closing credit card accounts can reduce your overall length of credit history and utilization rate, I did not close any credit cards. I also made sure each credit card was active. Every few months, I used each account strategically.
4. Do not open new accounts (in your name)
Since we did not apply for credit jointly, my credit score was not affected when we opened accounts in my wife's name. Her credit score was also strong, but mine was higher. She also had no interest in my obsession with a perfect credit score.
5. Maintain a low credit utilization rate
By paying my credit card balances in full daily, I maintained a credit utilization rate close to 0%. You read that right. As I drank my morning coffee, I would pay every credit card balance in full every morning.
After doing this for a year, my FICO 8 credit score broke through to 850.
You'll see advice to keep your utilization rates below 30%, and that's not good advice. It's like telling someone they will be healthy if they only eat two donuts for breakfast instead of five.
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