Getting Different Credit Scores

What is the Highest Credit Score?

The other term for credit score is called FICO score.  FICO stands for Fair Isaac Corporation, the general system to determine the credit score.  There are a lot of factors that affect our FICO scores.  The higher FICO score the individual has, the greater opportunities in the financial world.  There are actions to be taken to get a better score or if you may want to get the highest possible anyone can have.  The question is how we will be able to achieve the highest credit score?  What’s the range of the FICO score?


The range of FICO scores can be from 300 to 850.  If we get the 850, the highest credit score which is next to impossible, well there is no harm in trying though; but once we achieve even near to that score, we will have more opportunities to get better interest rates when we apply for housing, car loan, business loan, etc.  In addition, there are several banks who will offer the best interest rates for getting new credit card accounts.  You will be receiving a huge number of marketing promotions and offers from financial institutions.  The advantage of having a high FICO score can give you the power to choose for the best credit card with no annual membership fees, lowest interest rates and excellent rewards program.

What are the determining factors to get a high credit score?

  1. Getting Different Credit ScoresThe most important factor is Payment History.  If we want to get a high score, making payments on time is a must.  We are judged as financial account holder mainly based on our previous and present payment history.  This factor contributes 35% of our credit score. 
  2. The next important factor is the severity of the amount we owe, our debts. If we have a lot of debts, it can lead to a lower score.  It is also important to know that using too much of your available credit is a no-no.

To be specific, if we have used up more than 30% of our available credit on our credit card, our credit scores will start declining.  So, monitoring our usage is a must.  This determining factor also contributes 30% of our credit score.

  1. Then, the longevity of your credit history with credit bureaus or credit reporting agencies plays a significant role in determining the credit score.  This means that closing our first and oldest credit card is a big mistake. 

When you decide to open a new account thinking you’re getting greater deals, you’re making such a huge mistake, because it is important to keep old credit card account than keeping new ones. New credit cards don’t create a big impact on credit scores.  The longevity of your credit file is 15% of your credit score.

  1. Another important thing to consider is the number of new credit card accounts you have or you keep acquiring.  The more new credit cards you have, the greater it will have a negative impact on credit score.  So, there is no need to get a new one if it’s not needed and being used. Because this factor contributes 10% of the FICO score.
  2. Collection or variety of financial accounts is also a plus when it comes to building a good credit score.  Financial accounts such as car loans, credit cards, home loans, and other type of credit accounts are greatly considered.  But if in case, you don’t need those other type of accounts, this can lower the formation of the credit score because this represents 10% of it.  This option though is advisable for account holders who are financially capable to manage all these accounts, but if not, it will not hurt to wait for the right time.  

So, there you go, we have all these determining factors to help us better understand the formation of credit scores.  It is up for us on how to put it into actions and start building our credit.  Credit rating is something that defines us.  If not totally, but this a great portion of oneself, it reflects who we are, what we do and how we stand in the society.