Stop Trying To Get The Highest Credit Score

Ever played a game where you have to level up and get more stuff and finally be the one with the highest rank, level or score? If you have, then you can understand how unnecessary such a feat can be. It seems as if everyone has been fretting over a few points on the credit scores they receive from different credit bureaus. Each credit bureau has different records of a person’s credit history and therefore, yields different credit scores. With credit taking control of our lives, this is a reminder not to go nuts over it.

• A Slight Difference of Scores Doesn’t Make A Difference
  There is practically no difference between a FICO score of 750 and 800. Both scores are great scores and they both warrant low interest rates but going from a score of 750 to 800 takes quite a while. The prominent concern of most people is the drop in their credit score from closing a credit card account. It is conventional wisdom that says you shouldn’t cancel a credit card if it has a long credit history and a substantial line of credit. But, if this card was a reason for racking up a large amount of debt, it would be financially healthier to remove it.

• Credit Means Nothing If You Don’t Need It
  Have you ever wondered what Bill Gates’ credit score was? It may be common to think that the wealthiest people in the U.S. also have the highest credit score. But, for a guy who has billions, he probably doesn’t need a line of credit. Therefore, his credit score is not necessarily the highest and it is possible to get a credit score higher than Bill Gates (but he most likely doesn’t even care what his credit score is).

• High Credit Score Isn’t Everything
  While a high credit score will come in handy when applying for major loans, it is not a 100% guarantee that you will get the loan. A credit score is based on credit history but current financial situations have an effect too. So, if I had a FICO score of 800 from paying off my mortgage and student loans over a long time and I recently became unemployed, I am not the best candidate for a loan since I don’t have income to repay it.

Yes, 95+% of the nation will need credit at some point but it is futile to worry about a credit score when it won’t matter in the near future. This is to advise those who purchase credit scores on a regular basis even thought they don’t need to. If there is any concern of credit fraud, spread out the 3 free annual credit reports over a year and use them to check for it.

Photo credit: TheTruthAbout

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