What does it take to be a credit “high achiever”? That’s the term for the estimated 1-in-10 people who have a credit score of at least 785, out of a possible 850. That means you’ll get the best credit terms and interest rates. Most of us have a score around 700 – and it takes a special kind of person to score in the “high achiever” range. One of those people is: Tom Pavelka, a man with a score of 848 out of 850 – 2 points shy of perfect; higher than 99.7% of people! So what do “high achievers” like Tom have in common?
- They have an average of four open credit accounts – for things like credit cards and car loans.
- Also, as you might expect, 96% of high achievers show no missed payments on their credit report.
Now, you might think that people who carry no debt, should have a “perfect” score of 850. But that’s not true, because experts say you need to have a track record of paying off credit on time to have a good score! That’s why the highest scores go to people who borrow money – and repay it on time – rather than to people who never borrow money. So what’s Tom Pavelka’s secret to a near-perfect score? Here are the 3 tips he lives by:
- Never charge something without having something to show for it.
- Never spend money without knowing when you can repay it.
- Pay your bills on time.
It’s just the little bit of financial intel you can share with your friends and family, and they’ll be wanting to knwo where you got the intel. Tell them weeknights from 6-9 PM on Radio for Your Neighborhood – WTYM – and The John Tesh Radio Show!