Dear Liz: You have done a number of articles on credit repair but have never told people how to raise a score into the 800s on the 300-to-850 FICO scale. How is that done? We make close to $100,000 a year, own four properties, have no debts except small mortgages on two properties, and have credit cards with high limits that we pay off each month, yet we can’t raise our score. What is the secret?
Answer: Your income and assets have no effect on your credit scores.
And there’s no benefit to having scores over 800. Lenders typically reserve their best rates and terms for anyone with scores that exceed lower benchmarks, such as 740 or 760. Furthermore, nothing in credit scoring is permanent — even if you vault over the 800 mark, you may not stay there.
If you want to play the game of trying to max out your FICOs, however, there are a few steps you can take. Make sure your mortgages and your credit cards are being reported to all three credit bureaus, since having both installment and revolving credit will help your scores. Continue to make all your payments on time. Don’t use more than 10% of your credit limit on any card, don’t apply for new credit, and don’t close any accounts. Finally, grow older. A longer credit history is a better credit history in FICO’s eyes.
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