According to FICO, the most widely used credit scoring methodology, the maximum credit score in the United States is 850. Some individuals might question whether it’s possible to reach a credit score of 900, though. Sadly, the response is no. There isn’t a credit scoring system that can reach 900 points. In fact, a score of 800 or higher is great and will grant you access to the best interest rates and credit options.
What happens then when a tradeline is eliminated? A tradeline is a history of your credit transactions, including credit card debt, loans, and other obligations. Your credit score may be impacted negatively if a tradeline is dropped from your credit report. This is due to the fact that a significant part of what determines your credit score is the duration of your credit history and the sorts of credit you have. The consequences of a withdrawn tradeline could be negligible if you have a lengthy credit history and a varied selection of credit accounts. However, a canceled tradeline could drastically impact your credit score if you have a brief credit history and few open accounts.
Let’s now talk about how to improve your credit score 200 points in 30 days. Sadly, there isn’t a secret formula to get such a big rise in such a short period of time. You can, however, take a few actions to raise your credit score gradually. These consist of timely bill payment, maintaining a low credit card balance, and challenging any mistakes on your credit report.
Depending on the type of loan you are asking for, the VA has different requirements for the number of tradelines. The VA does have credit score requirements, but they do not have a predetermined amount of tradelines that are necessary. You need a credit score of at least 620 in order to be qualified for a VA loan. However, if you want to increase your chances of getting a VA loan, you should have more tradelines and a longer credit history.
Let’s define non-traditional credit lastly. Rent and utility bills are examples of non-traditional credit because they don’t show up on your credit report. This kind of credit can be utilized to raise a poor credit score or develop credit history. Non-traditional credit is accepted by some lenders but not all, so it’s crucial to verify with your lender before submitting it as part of your credit application.
Conclusion: Even though achieving a credit score of 900 is impossible, there are methods you may do to raise your score gradually. It’s crucial to pay your bills on time, maintain a low credit card balance, and dispute any inaccuracies on your credit report. Your credit score can also be raised by having a lengthy credit history and a varied mix of credit accounts. Having more tradelines and a longer credit history will assist increase your chances of being approved for a VA loan. Finally, although not all lenders will accept it, non-traditional credit can be utilized to build credit history or raise a poor credit score.
Credit information that is not generally reported to the three major credit agencies (Equifax, Experian, and TransUnion) is referred to as non-traditional credit. Paying expenses that aren’t generally reported, including rent, utilities, and phone bills, on time and in full will help you establish non-traditional credit. Alternative credit reporting companies like PRBC and RentTrack, which focus on tracking non-traditional credit information, are another option. In addition, you can think about applying for a secured credit card or a credit-builder loan, which can aid in building a good credit history.