This is an excerpt from this article written by Ray Martin on Yahoo Finance by way of CBS Money Watch. I think it's funny how much he says folks. Good info nonetheless.
If you want to take action to increase your credit score, then take a look at folks with the highest credit scores. About 13 percent of folks have credit scores of 800 or higher. If you look at their credit profile, they have:
- four to six credit card accounts (check)
- no late payments in the past seven years (Womp, this is what I get for cosigning a loan, never again)
- at least one installment loan -- a mortgage or a car loan -- with excellent payment history (I've nothing of the sort)
- an average of 10 years credit history per account and a few accounts with 20 years of good history (I'm not even old enough for either of those to be true)
- a low number of credit inquiries - fewer than three in the past six months (Good here buddy)
- no bankruptcies, foreclosures, charge-offs or collections, and (Good again)
- debt levels at no more than 35 percent of their overall credit limits per account (Close, but no cigar)
The bottom line: Having a long history of making all payments on time, using the right mix of credit, and not maxing out on available credit are the keys to a having a great credit score.
That's his bottom line, my bottom line is I only have 3 out of 7 and that's a fail no matter how you slice it. It seems you have to be old (or your parents have to have added you to their old ass credit lines) to have a credit score over 800, which is why only 13% of people have a score that high. I also recently read that your credit score is not about your net worth or even your debt, but about your likelihood/ability to pay a loan back consistently on time.
Anyway, just sharing good info. Getting my credit score up is a lofty goal. I'll just keep living. Paying my credit cards off is much more obtainable... I'll do that. LOL!