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If you are like most consumers, you have at least one credit card tucked away in your wallet. More likely than not, you have several of them, enabling you to stretch your purchases out over as many cards as you would like. Chances are that you don’t even think about how your purchasing patterns can affect your credit score. Why should you? After all, while you need a good credit score to obtain additional forms of credit such as home mortgages, car loans, home equity lines of credit, and new credit cards, you don’t need a perfect credit score.

Is There Even Such a Thing as a Perfect Credit Score?

To be honest, there is a number that has been assigned to the perfect credit score. That number happens to be 850. Does it exist? Sure. Do you know anyone who has it? Probably not. Do you even need it? Doubtful.

How Do You Obtain a Perfect Score?

Do many consumers have a perfect credit score of 850? In order to achieve a perfect score, you would have to do everything right. What exactly does that mean? In the broadest sense, doing everything right in order to obtain the “perfect” score of 850 means each of the following circumstances would have to occur:

  • You’d have to obtain new credit at the ideal time so that it doesn’t affect your score negatively.
  • You’d also have to close out your accounts at the optimal time.
  • You would have to charge the right percentage of credit on each of your existing accounts.
  • Bills would need to be paid on time with no missing or late payments in evidence.
  • Your debt balance would have to be optimal.
  • Your credit limits would need to be in tune with your income and spending amounts.
  • Employment history must be perfect in every way.

Why Don’t You Need a Perfect Credit Score?

The truth of the matter is that no one actually needs to obtain an 850 in order to access the best interest rates for mortgages, auto loans, installment loans, or new credit card accounts. All you need to do is to fall within the top range of scores. There is no magic number that gets you the best of everything, while everyone falling under that single 3-digit score gets the worst possible percentages and terms for the credit they obtain. All you need to do is to achieve the lowest score within the top range of numbers to be able to access the best interest rates.

Do All Lenders Use the Same Range of Scores to Determine the Rates Offered to Their Applicants?

Typically, it is more difficult to get the best interest rates when you are applying for a mortgage. This type of debt usually involves a larger sum of money, and therefore, lenders use more discretion when making their decisions. This means that the range of numbers used to qualify for the best interest rates for auto loans and credit card accounts is usually lower than the range used for home mortgages.