How do I get an excellent credit score?

You can get an excellent credit score by always paying your bills on time, disputing errors on your credit report, keeping your credit utilization low and diversifying your credit mix. An excellent credit score is generally considered to be in the range of 750-850. Such a score is achievable if you exhibit financially responsible behavior over the long term.

How to Get an Excellent Credit Score

• Pay bills on time, always: A history of on-time payments will improve your credit score. Conversely, late payments can have a detrimental effect, and the impact is even greater if you already have good credit. It’s imperative to always keep all your accounts in good standing.
• Dispute errors: You can monitor your credit to help spot errors dragging down your score. If there are inaccurate entries, you can file a dispute with the three major credit bureaus. You should receive a response within 30 to 45 days.
• Pay down revolving credit balances: An ideal credit utilization ratio is 1-10%. Paying down your revolving credit balances and reducing your utilization will increase your score.
• Apply for a higher credit limit: Raising your credit limits will also reduce your utilization if your spending stays the same. It is important to note, applying for a credit limit increase usually results in a hard inquiry and can temporarily lower your score by around 10 points or less. But in the long-term, having more available credit benefits you.
• Diversify your credit mix: Lines of credit and credit cards are considered revolving accounts, and mortgages and auto loans are installment accounts. A mix of both can have a positive impact on your score. Although your credit mix doesn’t weigh as heavily as other factors, scoring models still take it into account.
• Ask to have negative entries removed: Lenders, creditors and collection agencies are not required to remove negative entries from your credit report. However, they can as a courtesy. This is also known as a goodwill adjustment. Although it’s not guaranteed to work, consumers have found success with this strategy.
• Increase your income: It is possible to improve your credit score at any income level, but consumers with excellent credit tend to have higher incomes. At a higher income level, you can pay off debt faster, increase your credit limits and lower your utilization, all steps that will boost your credit score.
• Be patient: Over time, you can develop a strong borrowing history, pay down debt and accumulate more savings. Building healthy financial habits will ultimately lead to an excellent credit score.

You can check your credit report, keep track of your credit score, and get personalized credit-improvement tips for free here at WalletHub.