You should set high goals for yourself if you want to have the ideal credit score. Although 25% of Americans have excellent credit, very few have the very best credit score.
Let’s examine the maximum credit rating score that can be attained, how to get there, and what occurs when you reach the high score.
What’s a Perfect Credit Score Number?
An 850 credit score is considered perfect. Both the highest possible VantageScore and the highest FICO credit score are 850. Nevertheless, anything above 800 is essentially ideal. However, 850 is your goal if you’re trying to reach the highest possible score in the credit game.
Aiming for near-perfect credit is commendable since it demonstrates to lenders your financial responsibility. Having a high credit score makes it easier for you to get the best credit products, like credit cards with outstanding benefits and rewards. Additionally, since you should be able to get the best rates when you have excellent credit, it can help you save a significant amount of money on interest.
Can You Have a 900 Credit Score?
Although it sounds unreal, a credit score of 900 is not the new high. According to both the FICO and VantageScore credit scoring models, which are widely used in lending decisions today, an 850 credit score is the highest possible score..
How To Get an 850 Credit Score
The majority of people have a long and tedious journey to an 850 credit score. It all comes down to responsible credit use. This entails using as little of your available credit as possible while paying off your bills on time each month. It won’t be easy to maintain for a few decades, though.
Several actions can be taken to achieve an ideal credit score, including the following:
Stay away from any drawbacks. Missed payments, collection accounts, and negative information are generally absent from the credit reports of consumers with 850 credit scores. Make sure to pay all of your bills on time, and keep an eye out for mistakes, especially negative accounts, on your credit report by checking it frequently.
Keep your credit utilization low. For customers with 850 credit scores, the average revolving credit utilization is 4.1%, according to FICO. Without factoring in mortgage balances, the average credit balance is approximately $13,000.
Hold onto previous accounts. The average age of an account held by high credit scorers is thirty years.
Be cautious while opening new credit accounts. 10% of high scorers, according to FICO, had at least one inquiry within the previous year, and 25% had opened new credit accounts during that time.
How Many People Have a Perfect Credit Score?
Although it is uncommon, it is possible to have a perfect 850 credit score. A little over 1.6% of Americans who meet credit requirements have a score of 850.
A quarter of Americans, or 23.3%, have credit scores above 800, even though very few have a perfect score of 850. While maintaining excellent credit habits is necessary to reach an 800 score, an 850 is much more unachievable than an 800.
What Can You Do With an 850 Credit Score?
What occurs after you reach the highest score of 850? It’s not realistic to anticipate that the credits will roll in and you’ll win big time like in a video game! But excellent credit products are available to you.
The benefits of an 850 score aren’t that different from the benefits of excellent credit. Yes, you do get a new pride once you roll over from 849 to 850, but in the end, having excellent credit allows you to access most credit products; an ideal 850 score is not necessary.
Having an 850 credit score gives you access to the best terms, like the lowest interest rates, and allows you to be approved for the majority of credit products. This corresponds to:
- approvals for the greatest credit cards, including those with the greatest rewards programs and most worthwhile perks
- Reduced interest rates on personal loans, mortgages, credit cards, and other loans can result in significant savings each time you need to obtain credit.
- If you reside in a state where insurance rates are determined by credit, your premiums will be lower.
- reduced or waived security deposits for mobile phones, utilities, and apartments
Nevertheless, achieving an excellent credit score (a FICO score of 800 or higher) indicates that you have a credit score that is significantly higher than the average score for all U.S. consumers. Lenders can see that you are a reliable borrower and that you have a good chance of being approved for most credit products. You don’t necessarily need to reach 850 to receive these benefits, though.
The bottom line
Reaching the highest credit score of 850 is a fun but completely unnecessary goal. It may take years to obtain, but responsible credit practices can improve your financial situation. However, you’ll already be able to take advantage of nearly all the advantages of having perfect credit once you’ve established excellent credit.
Frequently Asked Questions.
What is the highest credit score in the U.S.?
The highest credit score you can achieve in the U.S. is 850.
Do you start with a perfect credit score?
One does not begin with an impeccable credit score. Your credit score will be relatively low, to begin with, but you can raise it from there.
Is there such a thing as a 900 credit score?
A 900 credit score does not exist, at least not in terms of conventional credit scoring. While FICO bank and auto scores can range from 250 to 900, most consumers are usually only concerned with credit scores up to 850.
Which credit score band has the highest percentage of people?
With a percentage of 23.3%, the excellent credit score range of 800 to 850 has the greatest number of consumers. Very good credit (750 to 799), which has 23.1% of the population, comes in close second.
How can I build a high credit score?
By establishing sound credit practices over time, such as timely bill payment, avoiding negative marks, and keeping low balances, you can raise your credit score.
What is the perfect credit score to buy a house?
To qualify for a conventional mortgage, the majority of mortgage lenders require you to have a FICO credit score of at least 620. However, obtaining the best rates and terms is facilitated by having an excellent credit score of 800 or higher.