Most of us are familiar with the alleged creature purportedly inhabiting Loch Ness in Scotland. "Nessie" was brought to the world's attention back in 1933 however the scientific community regards the Loch Ness Monster as a modern day myth. In fact you are just as likely to see Nessie as you are an 850 credit score. Credit scores haven't been around quite as long as the Loch Ness Monster. Back in the 1950's insurance companies, retailers, banks and other lending businesses used data base information from thousands of customers to create these very critical numbers.

Over the past 10 years my company has closed and funded over 4,000 home loans. That's at least 4,000 credit reports and not one with an 850. Supposedly 1 in every 100 credit reports has an 850. We've simply never seen it. That could be due in part to the fact that we primarily deal with first time home buyers. From what I've gathered from Equifax, TransUnion, and Experian, if you want a perfect credit rating you will more than likely need the following:

* No bankruptcies, collections, judgments, or foreclosures, EVER!! * At least 1 mortgage loan with no late payments. * 4 or more credit cards with balances of no more than 35% of the credit limit. * Minimal Inquiries * Twenty plus years of credit use with multiple accounts.

As you can see the quest for a perfect credit rating may seem pretty far from reach. Keep in mind that our past 4,000 clients all got great home loans and did not have an 850. In fact, there isn't much difference in a 750 and an 850. You don't get any brownie points on your home loan application for having a score above 750.

The journey to healthy credit is a lifelong commitment. Building a good credit history is essential to anyone that wants to purchase a home, rent an apartment, start a business, even get that new job.

If you will simply pay attention to your expenses and spending, the path to building good credit is a snap. First of all, know what is on your credit.

Keep doing what you do, pay your bills on time and don't let your debt get out of control. Remember to check your credit report periodically for errors and dispute those errors immediately with all three bureaus. And for best results always get all three scores with your credit report.