What does having a perfect credit score mean to you? Well, it might mean being able to show up at the dealership and buy your next car without worrying about how you will finance it.
Or, it might mean having peace of mind knowing that you can purchase your dream home because you've qualified for a relatively low-interest rate.
Either way, having a perfect credit score can open up many opportunities you may otherwise not have access to.
Now, you may be saying to yourself, "I have a good job, I pay my bills on time, what more do I need to do?"
Well, if you're planning to finance any big-ticket purchase in the next twelve months, or even apply for a new job, effectively managing your credit is essential.
That's because we're currently in an economic environment where loan approval rates are falling, and borrowing costs are rising. And so, it's crucial, now more than ever, to do the work to build up your credit profile even if you already have a solid credit score.
To be sure, according to the credit reporting agency Experian, only around one percent of Americans have been able to attain a perfect 850 credit score.
And while the goal of a perfect score may seem elusive to you, practicing good credit management habits towards that end can help give you optionality, access to better financial opportunities and potentially save you thousands of dollars in borrowing costs in this challenging credit environment.
So how do you go about maximizing your credit score in this uncertain economic environment?
What you should do is focus on the basics.
And while you may already be proficient in many of the credit management basics, taking a few moments to check your credit report to review your account profile, account summary, and payment history for potential errors can help you maximize your purchasing ability and avoid unnecessary costs in a rising rate environment.
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