What Is The Perfect Credit Score?

The term ‘credit score’ is one that certainly isn’t alien to anyone who pays for anything using credit in the UK. If you have outgoing funds, if you want to pay monthly on your phone contract, if you want to rent anything or borrow money from a responsible lender, then you’ll likely need a ‘good’ or, ideally, ‘perfect’ credit score. But what exactly do we mean by a perfect credit score? It may be a mystery to most, but we’re here to give you a better insight into just what your credit score is, what a perfect one is considered to be, and how you can achieve it!

What Is The ‘Perfect’ Credit Score?

The term ‘perfect’ credit score is one that is somewhat elusive – as there is no singular perfect credit score in the UK. Every lender and vendor will have a different scoring system and, of course, a different idea of what ‘perfect’ is. It’s a pain for those of us in need of their services, but in general, a good credit score will depend on your previous debts, payments and even how many bank accounts or credit cards you have. If you can keep on top of your payments and bills, your credit score is likely to be higher. Missing payments, repossession, or accounts that have been settled at less than originally agreed at the time of contract can all reflect negatively on your credit score.

How Can You Achieve The Perfect Credit Score?

  • Pay Your Owed Debts On Time

This may seem like a bit of a no-brainer, but paying what you owe on time is a fool-proof way to keeping a good credit score. Negative records like bankruptcy, charge-offs, collection accounts and even judge rulings can reflect badly on your credit score, and make it difficult in case you need a loan of any kind in the future. Keep up with your payments by only ever agreeing to what you know you can afford, and you should be fine.

  • Keep Your Credit Card Under Control

For a good credit score, you may be thinking that a credit card is probably best avoided – but you’d be wrong. In fact, a credit card is the good way to build up a good credit score, but you have to make sure that you keep it firmly under control. Only use it when you know you’ll be able to pay it off in good time. Try and avoid spending more than 10% of your agreed credit limit each month.

  • Think Of The Long Term

The best way to keep a high and most importantly stable credit score is to think long term with your payments, credit cards and anything you do financially. A perfect credit score often comes from longevity – or, in other words, having at least ten years of proof that you can keep up with payments and credit. It’s a good idea to keep your bank accounts and credit cards open as long as possible if you can, and keep on top of them at the same time!

  • Be Responsible

In short, you just need to be responsible. Make sure you keep up with what you owe, use your money responsibly, and understand that while a perfect credit score can be difficult to obtain, it doesn’t mean that you will be turned away everywhere if you don’t have a perfect credit score. It is important to remember not to take out some forms of credit, such as high-interest short term loans, unless you are facing a financial emergency, or you know that you are likely to be unable to make the repayments.

When it comes to your credit score, remember that a perfect score is often difficult to obtain, and it isn’t always possible to keep it perfect forever. However, with a little responsibility and forward thinking, you can avoid any adverse effects where possible.

At Wizzcash, while we do carry out a credit check upon application, this may not be the deciding factor in your short-term loan application. As a short-term loan lender, we have affordability criteria which must be met by each applicant in order for us to lend to them, and this combined with our checks helps to ensure that we are responsible alternative for those facing a financial emergency.

Generic advice is not a service regulated by the Financial Conduct Authority.