Only a very small percentage of people have what they say, "perfect credit". This means a FICO score of 850 on the Fair Isaac's scale. It is no secret as to how they have earned this. Their credit files would most probably reveal that they have around 4 and 6 credit cards, at least one auto or home loan in great standing, 10 years or more of positive credit account history, about 30 years or so of credit use, No blunders or NO LATE PAYMENTS in the past 7 or so years, minimum credit inquiries, etc. Sounds terrific - doesn't it? Well you could get your credit to be healthy too if you did the following.

Know that at least three main credit-reporting agencies are definitely keeping tabs on all your financial dealings. What you have to do is know what they are saying about you. Access your rap sheet (either from Trans Union, Equifax etc) at annualcreditreport.com. This will give you a chance to take a look at your record that shows your borrowing in the last decade, etc. No doubt there may be errors and false data but you can update all that. If you do have a history of defaults, late payments etc think of them as self- inflicted wounds that cannot really be wiped out from your report. But even these will fade with time. It is your recent behavior that counts and what will carry more weight. Prompt and regular payments will help you to get a better report and enhance your creditability.

The Golden Rule where credit cards are concerned is that you got to remember that it IS plastic and not cash. You have to tell yourself that you don't really have that money to spend even though you are allowed to "borrow" that sum from Visa, Target etc. Take control of the situation and keep tabs on yourself for a start. If you keep your spending money under control and pay off all your bills on time without applying for credit all the time, you will be pleasantly shocked to see yourself on the "elite" credit list.

It is therefore possible to boost your credit score in no time. You can improve in less than six months if you correct the mistakes you have made in the past. Punctuality in payments is on top of your priority list. Don't go in for big purchases unless you are in a better position financially. Keep your credit card use to the minimum and make debt repayments as much as possible.

Don't damage your credit utilization by closing old accounts even if they are not being used by you. What you can do is to buy small things with those old cards instead of stagnating. Refrain from asking your bank to up your limit of credit if it is going to make you head for the mall. Remember swapping debts should not be taken lightly if you are going to put your home at risk - paying your home loan is most important so don't be careless about what you owe Home Equity Loans.How to get onto the "ELITE" credit list!