Doug's Credit Center Blog

How High Can Your Credit Score Get?


It should be your goal to have the highest credit score possible. As a general rule, anything above 700 is considered an above average credit score. If you have a credit score over 800, you are considered to have elite credit. What are some ways to increase your score?

Load Up On Installment Loans

Installment loans won’t hurt your credit score as much as revolving credit accounts will. Furthermore, installment loans help to establish your credit history. Those who have a lengthy credit history are more likely to get better terms on auto and other loans. As long as your debt isn’t too high in relation to your income, your credit score will not suffer regardless of how many installment loans you have out at once.

Have At Least One Credit Card

Although revolving credit accounts can be dangerous if you use too much of your available credit, they can also be helpful for your credit mix. Lenders want to see that you have experience dealing with different types of credit. Therefore, you should open at least one credit card that has a limit that you can afford to easily repay in a timely fashion.

Pay Your Bills On Time

The easiest way to damage your credit is to not pay your bills on time. Each payment that is 30 or more days late will ding your credit score by as many as 100 points if you have a good credit score. A payment that is 60 days late could ding your credit score by as much as 200 points. Therefore, you can go from a good credit score a mediocre score just by paying one payment a month or two late. The good news is that you can undo some of the damage by paying past due bills and bringing your account up to date.

If you are thinking about applying for a car loan, you need to have good to great credit to qualify for the best loan terms. Make sure that you build your credit history, have at least one credit card and pay your bills on time if you want to have excellent credit.


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