How to Achieve and Maintain a Perfect Credit Score

Introduction

• Perfect credit score requires understanding key factors.
• Misconceptions about credit scores can cost a lot over a lifetime.
• Importance of having multiple credit cards and managing them well.
• Chris Rios shares personal experience with over 30 credit cards.

Five Factors Determining a Perfect Credit Score

1. Payment History (35% of score)

• No missed or late payments.
• Important dates: Closing Date and Statement Date.
  • Closing Date: When bank reports status to bureaus.
  • Statement Date: End of 30-day billing cycle.
• Pay debts before the end of the 30-day billing cycle.

2. Credit Utilization (30% of score)

• Recommended to keep utilization below 10%.
• Utilizing over 30% starts flagging risk.

3. Length of Credit History

• Older credit is better.
• Average age of accounts matters.
• Choose high-quality accounts strategically.

4. Credit Mix (10% of score)

• Diversity in credit types: Revolving Loans and Installment Loans.
• Ideal to have at least two installment loans.

5. New Credit (Hard Inquiries)

• More accounts can be beneficial.
• Limit to two hard inquiries every six months.
• Demonstrates ability to handle debt without seeming desperate.

Methods to Boost Credit Score

Checking Credit Score

• Use Experian or Credit Karma for free reports.

Build Installment Loans

• Use services like CredStrong or Self.inc to simulate loans.
• Pledge Loan Hack with Navy Federal explained.

Reducing High Credit Utilization

• Request credit line increases to reduce utilization percentage.

Leveraging Credit for Financial Benefit

Business Opportunities

• Use business credit cards to separate from personal credit.
• Business credit isn't reported on personal credit.
• Higher limits available for business cards.

Financial Advantages

• Opportunity for rewards through points and cash back.
• Potential to travel for free using credit card points.
• Investing credit in business opportunities can enhance ROI.

Conclusion

• Proper credit management improves life quality.
• Program available to help leverage credit for business creation.