How To Get A Perfect Credit Score 2023,Convert To Green Score

How To Get A Perfect Credit ScoreCredit score is just a numeric values but it ensures an individual creditworthiness after analyzing his or her credit files.The score is calculated based on person’s credit history,debt levels,repayment history,number of open account and other factors.Lenders check credit scores and evaluate before offering any loan amount.In this post we will discuss how to get a good credit score and maintain it any cost.Once your score comes in green category ,you are eligible to get maximum benefits out of it.Read all suggestion in below section :

What Is A Perfect Credit Score ?

A perfect credit score indicates when credit bureaus feel happy with your credibility gives you the top level score.Its not that easy to achieve as it sounds.But on regular checking and restriction you can the tag.Many credit score companies and FICO mention certain numeric values,which indicates your current status.These are as follows :

  • Credit score 300 – 579 indicates very poor
  • Credit score 580 – 669 indicates fair
  • Credit score 670 – 739 indicates Good
  • Credit score 740 – 799 indicates Very Good
  • Credit score 800 – 850 indicates Exceptional

On Time Payment

If you want a perfect s credit score you have to fulfill several terms & conditions.Among all of them, first is your on-time payment history and this makes up 35% of your credit score. Now this one is incredibly straightforward, just don’t miss a credit card payment and don’t pay it off late ever.In order to get a perfect credit score you’ll need to pretty much never miss a payment otherwise that could ruin everything.Now here’s how this works and how it’s calculated the credit Gods look at all of your on-time payments and then divide that by your total payments and then from that they calculate what percentage you paid on time.

Credit Scores

Now here’s just an example, let’s say you’ve had one credit card for 60 months and you end up missing one payment that means the credit overlords take 59 on-time payments divide that by total 60 payments and you have a 98.3% payment ratio and as you could see from the Credit Karma score calculator that puts you in the yellow which is not good that is unacceptable if you want to get a perfect score .

However in a different example, let’s say you’ve now had 2 credit cards each for 60 months and you end up missing one payment. Well now, you have a total of 120 credit payments between two credit cards which means that they take 119 on-time payments divide that by 120 total payments between the two cards and that means you’ve paid 99.1% on time which puts you in the green category as far as Credit Karma is concerned which is a little bit better.

One more example, let’s just say you’re brand new to building credit you have one credit card you’ve had it for 15 months and you end up missing one payment .Well the same calculation still applies you have 14 on-time payments divide that by 15 total payments and that means you’ve only paid 93.3% on time which is bad that’s really bad it’s in the red according to Credit Karma, which means you can’t pass go, you can’t collect 200$ and you got to go right to jail.

It’s that bad but that also means, that you could prevent this from happening by not only just not missing a payments in the first place, but also having more credit available to you for a longer period of time. So that way if you do miss a payment it does end up impacting you a lot less. like having credit cards open for five years would give you 600 total payments .So that if you end up missing one payment by mistake it still means you’ve paid 99.8% on time which is not the end of the world.

Also Read : Secret Formulas to get discount on car insurance

Credit card minimum payment

Now when it comes to paying off a credit card on time, the really good news is that for them to count it as an on-time payment. You just have to make the minimum payment every single month which most of the time is really just like twenty-five to fifty dollars a month. So even in the worst case scenario if you can’t afford to pay off your credit card bill in full, just make the minimum payment on time every single month and that will help keep your score intact in this category,which like we said all of this is the most important part of your score making of 35% percent of what it is just ask Dave Ramsey

Credit Utilization For Perfect Credit Score

Besides that the second factor that makes up your credit score is known as what’s called the credit utilization that makes up 30% of your score. Now in order to get a perfect score the credit bureaus just want to see that, you’re not out there just maxing out all of your credit cards and that you’re only using a small percentage of the overall credit that you have available to you.

What makes Credit bureaus Angry & Happy

Ideally you want to be spending under 10% of your total credit limits showing the almighty credit gods that you don’t need all the money they’ve given you because you’re that good with money. Now if you’re confused here’s how this works and here’s how it’s calculated. Let’s just say if a credit card with the $10,000 dollars limit and you go out there and you spend $6000 dollars and then after that you just go and make the minimum payment. Well at that point you do the calculation and you’re using it 60 % of the available credit you have which puts you in the red category here which is bad. Now you’re seen as a riskier borrowers because you’re carrying a higher balance and that makes the credit bureaus very angry and they’re gonna lower your score.

On the other hand if you have the same one credit card with ten thousand dollar limits you spend six thousand dollars but you pay it off in full when it’s due. It means you now zero dollars on a ten thousand dollar credit line which shows that you have a zero percent credit utilization which makes the credit bureaus very happy and gives you a green category .

Credit Percentage

Now there are some ways around this because it’s not the dollar amount that the almighty credit gods care about, it is the percentage of credit that you actually use. So this means if you have $300 dollar credit line and you go out and spend 300$ that just means you’ve maxed out your car, you have a 100% credit utilization and that’s very bad .But if you go and spend that same $300 although this time you have a $30000, credit line then that’s showing that you only have a 1% credit utilization which is really good .

Now one of the techniques, We use to help with this is just to have a lot of available credits with all really high limits. For instance right now you have over 12 credit cards and many of them have over $30,000, credit lines. Now you never ever ever actually going to spend that much money but it does help you in the instance where you go and spend $10000, or more on a home remodeling budget and you can still show a very low credit utilization,because you have so much credit already available. Now there is a myth out there that suggests you should keep a small balance in your credit card at the end of every month so that way the credit bureaus have something to report and this one is false.

Credit card balance & Credit score

Keeping a balance on a credit card is not going to help improve your score and if anything now it’s going to cost you more money and interest. So it’s always better to pay it off in full by the time it’s due and never carry a balance on the credit card ever.So for you , if you want to get a perfect credit score it’s really important that you try to keep a balance of 5 % or less of your available credit. It doesn’t mean that you can’t go out there and spend more than 5% of your available credits but it does mean that you should pay it down before the statement cycle is over.

In this way the credit bureaus have less money to report. On now in addition to that it will help you to go and get more credit cards as counter intuitive as that is to say because that will help increase the total credit limit you have available to you which will decrease your overall credit utilization

Ask For Credit Limit Increase

Finally we,strongly recommend you ask for a credit limit increase every 6 to 12 months on your credit cards. This way you’re gonna be constantly lowering your overall credit utilization and helping to improve your score. Just remember don’t go out there spending more money just because you have more credit available to you. We think that goes without saying all of this should really be done as a tactic to help increase your credit score and not go out there buy more things that you don’t need.

Keeping Balance

One more note, we want to leave off with this one how much money you keep is a balance on a credit card. It is really going to be temporary, this is one of those things that’s only going to impact your score until you pay down your credit card and then your score will end up going up afterwards. So if you have a high utilization rate right now or in the short term it’s not the end of the world and your credit score will reach as soon as you pay it down.

Length Of Credit History

They say that length doesn’t matter but when it comes to calculating your credit score it very much does. Because 15% of your overall credit score is made up by the average length of your credit history. It means the longer you’ve had credit for and the sooner you start the better. This is one of the reasons, we highly recommend people to build their credit as soon as they possibly can. Even we mean get a credit card the day you turn 18.This will build the entire foundation of your credit history very early on.

Now it’s very important for us to distinguish here that this is calculated by the average length of your total credit history and not the total length.Let us explain, one credit card 4 years ago that would mean your average credit history shows as 4 years. But if you opened up that one credit card 4 years ago and then you opened up another new credit card today your average credit history would be reduced now to two years.Remember because it only takes the average. The same also applies if you end up closing an old credit line because some people believe it’s a good idea just to close old credit cards they don’t use anymore. This could be really bad because once you close off an old credit card even though it’ll still show in your account for seven to ten years. It could lower the average age of your accounts after that and then you would have to wait even longer to build a back up.

Start Credit Asap And Have Patience

So our recommendation is to first start building your credit as soon as you possibly can and keep all of those accounts and good standing as long as possible .This is gonna help you build up a solid fortress of long standing credit history so that when you do go and apply for new credit it’s not going to impact your account as much.,Since you have a lot of long-standing credit history already Because of all of that it’s going to reduce your score a lot less and when it comes to doing all of this really the only thing you could do at this point is just wait.

This part of building your credit just takes time, so don’t be impatient. if you’ve just got a credit card and made a few on-time payments and don’t yet have a seven sixty score .Patience goes a long way with this one so sometimes you’re just gonna need to wait this one out.In terms of how long you’ll need to wait according to the credit karma guide they want you to have 9 years or more of average credit history to get the best ranking .

Total Credit Lines

Another aspect if your credit score is how many lines of credit do you have open and this makes up 10% of your score. Now this is one of those things that you would think makes absolutely no sense. Like why would you go and reward someone for going and opening up more credit cards and taking out more loans .You would think that the person who doesn’t really need any credit and doesn’t have much would have the highest score. But if you think that way you would be wrong and here’s why? at first the more credit you have the higher your credit limit will be which means the lower your overall credit utilization is likely to be which means the higher the score you will have if that makes sense.

More on time payments

The second by having more credit available you’re gonna be able to show more on-time payments which like we said is going to help increase your score as well.

Handle more debt

Third, having a mix of credit like having a mortgage, an auto loan and a credit card shows lenders that you can responsibly handle different types of debt without defaulting on. All of this sounds like pretty backwards thinking and a lot of it reminds the mindset of you’re only going to loan people money, who don’t need money because they’re the most likely to pay us back and that by the way is very true. Banks love lending you money when you don’t need it and as soon as you do need the money you’re seen as a higher risk, because you need it. This is how the system works and according to Credit Karma they want to see you with 21 lines of credit or more to have the perfect score.

We would recommend you aim to diversify your credit profile over time because long term that is going to help you get an 800 plus credit score and finally fifth we have the last component of your credit score which makes up the remaining 10% and that would be the total amount of inquiries on your credit report.

Total hard inquiries

Here’s how this one works any time you go and apply for new credit it’s reported to the credit bureaus and shows up on your reports is what’s called a hard inquiry this helps lenders keep track of how many times you’re going and asking for credit. Generally speaking the more times you’re going and asking for credit the riskier you become as a borrower.This is because lenders are worried that all of a sudden you’re out there going and applying for new credit cards and loans and they’re concerned that maybe something has happened that is causing you to do this like.

It makes them to think why did you just get three credit cards and in auto loan today. Are you running out of money ? are you going to all of a sudden max it out and then never pay it again. This all seems worrisome to lenders so therefore the more hard inquiries you have on your credit report the lower your score is generally going to be. Now in addition to that if you are out there getting you credit cards and getting you loans that is going to reduce your average credit length history which could end up further dropping your score as well .

That’s why so many people end up telling that they’ve just opened up a new credit card and then all of a sudden their score drops by like 50 points. It was not just the inquiry that did that it was also the reduction in your total average length of credit history that impacted your score as well.

Inquiry report validity

Report impact for 2 years

The inquiry was really only a small component of that. However,The good news is that all of this is really just a temporary thing because hard inquiries only show on your report for the first 2 years and they only impact your score for the first twelve months.After that they drop off your report and it’s like it never even happened in the first place the.Other good news with this is that, if you’re shopping around for an auto loan or a mortgage and you’ll need to run your credit multiple times with different lenders to get different rates.

Inquiries can group together

The FICO scoring method will generally just group all of those inquiries together as one.Therefore it’s only going to impact you as if you ran your credit score once. So that way you can go to five different lenders for a mortgage have them all run your credit five times and it’s only going to count as you running it once.

0% inquiries for green signal in last 12 months

Of course as long as you do it within a relatively short period of time within just a few weeks of one another. This is to promote rate shopping for you as the customer without penalizing you with your credit score but again this only makes up 10% of your overall credit score so it’s pretty minimal but ideally if you’re gonna want the credit karma green score they want you to have zero hard inquiries in the last twelve months .

Now realistically we think, having zero inquiries in the last twelve months is rather ridiculous especially if you’re out there going and getting like credit cards and getting bonus points and all that sort of stuff. so we think as long as you keep it to a minimum and are rather selective about the new credit you get, you should be fine and also if you’re in the process of going and building up your credit it’s probably best you go and take out a lot of credit now .

Few more recommendations

WE highly recommend you check your credit score every few weeks using a free service like Credit Karma or another really great one is credit Sesame both are really fantastic resources that update your credit score every week.Even though it’s not going to be exact and it’s not going to use the exact FICO scoring method. It’s still going to be pretty close and going to give you a great representation of how you’re doing Credit score wise.

Credit Piggybacking

The second you could try a technique to increase your credit score known as credit piggybacking .Now this is where you become an authorized user on a credit card from someone who has a very extensive credit history. Now when you do that their credit history could report on your credit account as well and that might increase your credit score a lot. In the short term you know it’s very important to note that not all credit card companies will do this. The FICO scoring method has been cracking down on people trying to do this to boost up their scores artificially.But we wanted to mention this because this is something that can work depending on your situation and how it’s done.


We personally think, it’s better to build up your own credit reports on your own and that way you have it with you no matter what.You don’t have to worry about any of this stuff but we think if you’re a parent and you want to help out your child look into doing this and you could help them out immensely in terms of building up their credit score just by going and doing following above tricks.

The article explains How To Get A Perfect Credit Score with some basic tips and tricks.