Now, there are credit score models that do allow for scores higher that 850.  The VantageScore goes to 990, but it starts higher.  The model coming up with the score is different as well.

Actually, a free years back TrueCredit was running a contest to find someone with a perfect credit score.  That was defined as having a 850.  Unfortunatly, no one claimed the prize and I am not sure if they still run it.

The highest possible credit score is something that we will never see in a life time or maybe better compared to a blue moon.  It is rare and I am not talking just by a little, but only a hand full of consumers have scores that high.  Also, chances are if you have a score that high you are so financially well off that you use credit as a matter of convience compared to carry all the money you could potentially spend.

Is it a goal you should set for yourself?  As much as it would be amazing to have the highest possible credit score, it is hardly attainable.  So more relistic goals should be set such as falling in the excellent credit score range.

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What has happened in the credit market and the old way your score was viewed.

The best account of this could be the new times writer, Edmund Andrews, who just released a book on the crisis, “Busted: Life Inside the Great Mortgage Meltdown”. He not only reported on the subject but was personally experiencing it. The synopsis of his story is the fact that he had a good credit score and earned a decent salary. But behind the scenes he had very large child support payments causing him to only live on a few thousand dollars a month.

When he applied for a mortgage, the broker at the time gave him a $500,000 approval. The monthly payment alone was close to what he was taking home each month after his child support payments. Why then did he get approved for a mortgage? First, the lender had less than reliable lending practices and second he had a good credit score. He further remarks when he went deeper in debt his credit score actually got better.

Now, this might not be the exact circumstance with each default, but has many of the common trends in default that we are seeing today. The fact someone who really couldn’t afford a loan got it. And this was based purely on the credit standing and they had a job.

How these defaults will cause a change to your Credit Score in 2009

First is the view of what is a good credit score in 2009 will change. Usually this level is somewhere above 700 plus and can range up to 750. This range might shift higher or might even be subdivided into smaller groupings of scores.

Also, a good credit score in 2009 will not be enough to get a mortgage. You will have to prove that you can really afford what you are buying not just represent it. Lenders will have stricter guidelines that they follow and a good credit score and a job won’t get you approved any more.

There also might be a look into the underlying reasoning and how to improve based on an examination of the crisis. These findings might lead to a change in the credit score formula or more specifically the FICO score calculation.

How to get a good Credit Score in 2009

The same rules apply as they do in the past on how to get a good credit score. Pay your bills on time, keep your debt to credit ratio low and the list goes on here is a list of different articles to read on tips to improve your credit score

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Step 1 on how to get a good credit score: Pay your bills on time

Since the largest of the FICO score calculation is your payment history, starting there makes sense. It equates for 35% of your score and seven years of your history are taken into account. So even one 30 day late payment can carry a large influence and will be with you for awhile.

It sounds simple to just pay your bills on time, but many individuals do struggle. This should lead to using a budget as a indirect way on how to get a good credit score. This method will allow to stay on top of your bills and help guarantee you are paying them on time.

Step 2 on how to get a good credit score: Pay down your debt

This step is not always easy. Committing to paying off debt is most often going to take time and effort on your part. The budget in this method can also be effective as a means to control spending and use the funds this creates to pay down your debt. Other methods have been known to work for immediate help like selling unneeded items.

The other side of the coin is to not add to your debt. Leave your credit cards at home and use cash whenever possible. These methods have been successful for many individuals.

Step 3 on how to get a good credit score: Only Apply For Credit You Need

If you have purchased anything in the last few years, you undoubtedly been asked to apply for a store credit line. It gives some initial discount on the purchase or points towards future purchases. If you did apply and get approved for all of these you would so find you have several new credit accounts that you really don’t use or need. Since each one of these is a credit inquiry on your credit report it will count towards your credit score. Sites like MyFICO the creators of the FICO score state if you don’t need it don’t apply for it. If you start racking up several new inquires, this can drag down your score and this is counter productive for trying to get a good credit score

Conclusion on how to get a good credit score

These are not fool proof ways of guarantying of your getting there, but will put you on the right path. You must realize it is going to take time and there are very few options for a credit score quick fix. But if you set a goal for yourself and develop a plan, you should be able get a good credit score

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