What Is The Highest Credit Score You Can Achieve?

What is the highest credit score which can be achieved? This is a question which is often asked by those with the ambition to become something of a tycoon in the business world, largely through their ability to make money with borrowed finance. The simple answer is that it would be 100% based on the algorithm which is used by the major credit rating agencies, but this is virtually impossible to achieve, and it is also completely unnecessary for raising any amount of finance you may need for your projects.

It is not so much a credit score which determines how much you can borrow, rather it is the collateral with which you can take away the bank's risk. This is assuming, of course, that you have a perfectly acceptable credit rating and that there are no negative markers against you. Building up your credit score to a level where you are eligible for high levels of gearing is one of the most fundamental steps in preparing to run a heavily financed business, and you may have to start by borrowing small amounts of money just to get some history of successfully paying it back.

There are multiple aspects to the algorithm which is used to determine credit scores, but the two most significant parts are the repayments and the credit utilization. Credit utilization refers to the percentage of available borrowing resources which are actually being used, and this is a significant statistic for anyone seeking to take their credit score to the highest level. The best course of action is to expand your borrowing as far as you can as long as it is low risk, and that will only happen if you have collateral to back up your loans.

credit rating

People wondering what is the highest credit score will need to understand that the degree of borrowing which would be needed to attain it will be beyond the scope of most people. The only way banks are going to be prepared to lend large amounts of money is if they see both a consistent record of making repayments and enough collateral to give them security. The largest borrowers have traditionally been real estate investors, because real estate gives the highest level of security to the lending bank.

Real estate investments can happen with relatively little money being needed up front, as the bank knows that in the last resort it has the option of foreclosure. This is not what they want, of course, and so they need to be sure that the risk even of that is remote. Borrowings need to be paid back from the rents which are charged to tenants, and ironically there is less risk if you are more highly geared and own more properties. If you own only one rental property, you are taking a risk that if you have no tenant you will have no income, whereas if you have ten properties it is virtually certain that you will have some occupancy.

You will only find out what is the highest credit score is you are able to borrow money consistently and keep paying it back without issue. A real estate portfolio is one of the very few ways that this can be achieved, as the amounts you can borrow do not depend solely on any income from your main job. This is the restricting factor which usually keeps people tied down to a poorer credit rating. It is your payment history and your proven ability to use borrowed finance which will fuel your investment rather than worrying what is the highest credit score.

 

 

repair credit score

Repair Your Credit Score - Click Here

 

 

 

repair credit score

Repair Your Credit Score - Click Here

 

share