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Discussion Starter · #1 ·
Is it possible to achieve a perfect credit score of 850? If so, how does one go about it? I will tell you in advance, living well within one's means, paying every bill on time, using multiple credit cards, but never carrying over a monthly balance, never using more than 3% of your authorized credit, etc. are not sufficient to do so! Is a score of 850 just one of those pie in the sky objectives that are in fact unreachable?
 

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About twenty years ago I had a big shock.

I needed to rent an apartment someplace I was going to be living temporarily (one year lease). At the time, I had a high income and no debt - NO debt. I owned my car, I owned my then-house, I used two cards (Amex and a Visa) which I paid in full monthly (the Visa was only used for those weird places which don't accept Amex, like hole in the wall Vietnamese restaurants and the like). No revolving credit, NOTHING. Zero debt, just the way I (at the time) liked it.

The apartment wanted a $1000 deposit.

I was pretty incensed, but it was explained to me that I wasn't carrying *enough* debt, or more precisely, I had no evidence that I could *manage* debt. After all, plenty of old hillbillies in the mountains live debt-free on a cash basis!

So that's when I realized that a credit score is less a measure of credit worthiness per se, and more a measure of *how good a banking customer someone is*. Our tendency to conflate credit score with moral worth is, perhaps, misguided; it's better thought of as a measure of willingness to play the banking/finance game.

So, I assumed some debt to manage, and at some point had to buy a new car (or two) anyway. Probably these days, in my 800s (but maybe not perfect) territory, I'd avoid the deposit. I think, though, to actually have *perfect* credit, that's something folks actually manage, like a hobby; I'm not sure there's much difference between, say, 820 and 850 (I know when I refinanced a house some time ago, I got the "best possible" rate offer, so mine was good enough.)

Supposedly my father (78 this year) has literally perfect credit - my mother always said so, anyway. Maybe a certain degree of seasoning is part of it?

DH
 

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^ that’s precisely what goes into the credit score.

When seeking credit, as when applying for a mortgage, is when other factors like income stability, debt to income ratio, etc. come into play. Ones credit score is an aspect of, albeit a big one, of ones credit worthiness and not the sole determinant.

Of course, when government puts its fingers in the scale and starts to favor certain individuals over others for the extension of credit, the market becomes corrupt and we get what we had 10 years ago.
 

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I have several tens of thousands of available credit space on cards. I get dinged on my credit score when they are all (rarely) paid off completely.

Credit is a racket. I am very intrigued by the Chinese social credit model. That is the frightening future we are venturing toward.

Cheers,

BSR
 

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Discussion Starter · #8 ·
Do you have a mortgage or an auto loan? Those might help.
We pay cash for our vehicles and carry only enough of a mortgage loan for the bank to keep accumulating the necessary escrow amounts to cover taxes and insurance, as each comes due. That way we don't have to worry about it. ;)
 

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Discussion Starter · #10 ·
I have several tens of thousands of available credit space on cards. I get dinged on my credit score when they are all (rarely) paid off completely.

Credit is a racket. I am very intrigued by the Chinese social credit model. That is the frightening future we are venturing toward.

Cheers,

BSR
We have a number of credit cards to keep the total credit authorizations at an acceptable level and use each at least once or twice a year to show activity and prompt bill payment. I can't recall getting dinged for paying all balances off each month, but with my memory these days, it could have happened. LOL. :icon_scratch:
 

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Is it possible to achieve a perfect credit score of 850? If so, how does one go about it? I will tell you in advance, living well within one's means, paying every bill on time, using multiple credit cards, but never carrying over a monthly balance, never using more than 3% of your authorized credit, etc. are not sufficient to do so! Is a score of 850 just one of those pie in the sky objectives that are in fact unreachable?
Zero Defects? ;)

Don't get old. Don't live in the wrong zip code. Don't rent. Don't go to the doctors too much. Don't buy too much. Don't buy too little. Don't buy everything on credit. Don't not buy anything on credit! Don't be married. You have to be married. Don't participate in social media. Don't drive the wrong car. Don't ever get a ticket. Don't ever have had a spouse or other relationship where your partner was irresponsible. Don't let the credit bureau(s) get screwed-up, erroneous information about you. And I strongly suspect, don't be the wrong ethnicity. (Though you can bet your bippy it's disguised as a different demographic calculation.)

Edit: And shouldn't you be off counting your footwear collection, anyway!? :D
 

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Is it possible to achieve a perfect credit score of 850? If so, how does one go about it? I will tell you in advance, living well within one's means, paying every bill on time, using multiple credit cards, but never carrying over a monthly balance, never using more than 3% of your authorized credit, etc. are not sufficient to do so! Is a score of 850 just one of those pie in the sky objectives that are in fact unreachable?
I'm a banker - if your score is over 800 I'm throwing money at you.

Sent from my iPad using Tapatalk
 

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A young fellow in my firm who does bankruptcies was trying to explain credit scores to me a while back and what I found interesting was that upon filing a consumer bankruptcy, the debtor's credit score usually goes up about 40 points...
 

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... carry only enough of a mortgage loan for the bank to keep accumulating the necessary escrow amounts to cover taxes and insurance, as each comes due. That way we don't have to worry about it. ;)
Always think that the house should be free and clear. If something ever goes wrong with your finances at least you still have the house and not booted out on to the street, as some have been.
 

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Discussion Starter · #16 ·
Always think that the house should be free and clear. If something ever goes wrong with your finances at least you still have the house and not booted out on to the street, as some have been.
Good point. I could just pay it off and make arrangements with the bank to set up my own escrow account (of sorts).
 

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Discussion Starter · #18 ·
Zero Defects? ;)

Don't get old. Don't live in the wrong zip code. Don't rent. Don't go to the doctors too much. Don't buy too much. Don't buy too little. Don't buy everything on credit. Don't not buy anything on credit! Don't be married. You have to be married. Don't participate in social media. Don't drive the wrong car. Don't ever get a ticket. Don't ever have had a spouse or other relationship where your partner was irresponsible. Don't let the credit bureau(s) get screwed-up, erroneous information about you. And I strongly suspect, don't be the wrong ethnicity. (Though you can bet your bippy it's disguised as a different demographic calculation.)

Edit: And shouldn't you be off counting your footwear collection, anyway!? :D
LOL. It would appear we are damned if we do and damned if we don't! :crazy:
 

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Discussion Starter · #19 ·
HELOC with zero balance is your answer. It's there for emergencies only.

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That's what I had intended to do a while back, but the bank led me to believe I would have to carry some sort of a balance, each month paying the escrow assessment, plus 3% of my outstanding balance. I will pay them another visit and clarify that point. Thanks for the suggestion. ;)
 
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