As you probably know, your credit score is a three-digit number used by lenders to give an assessment of your creditworthiness. It’s based on your credit history and can range from 300 to 850.
The higher your score, the more likely you will get approved for loans and credit cards with favorable terms.
Now, let’s get into more detail.
What Is the Highest Credit Score Today?
According to FICO and VantageScore, the two most common scoring models in the US, the highest credit score you can get is 850.
In other words, if you have a score of 850, you’re pretty much guaranteed to get approved for any loan or credit card you apply for, and you’ll probably get the best interest rates.
But just because you can get a score of 850 doesn’t mean you will. Does anyone have an 850 credit score? Based on the latest stats, merely 1.2% of credit holders in the US have a credit score of 850.
Fun fact: industry-specific FICO scores can get you an even higher score — an amazing 900!
Now, let’s get into more detail.
Steps for Improving Your Credit Score
For starters, one would need to have a long and impeccable credit history. That means no late payments, collections, or bankruptcies. Long credit history normally implies having at least seven years’ credit score experience. However, the longer, the better.
You also would need to use a small portion of your available credit limit. Most experts advise keeping the usage below 30%. Yet, be aware of the fact that the average FICO credit utilization ratio among highest score owners is only 4.1%.
It’s a good idea to have a diverse mix of credit accounts, including revolving (credit cards) and installment (loans) debt.
You need to have inquiries from potential lenders on your credit report, but not too many. An additional hard credit inquiry could damage your otherwise perfect score.
Is it possible to get a 850 credit score? Yes, it is. To improve your credit score, you can also focus on the following:
- Check your credit report for errors — you can one of the three major credit bureaus for the report. Good news: it’s free! However, you get to do it once a year.
- Make all of your payments on time — payment history is the most critical factor in your credit score.
- Keep old accounts open — the length of credit history makes up 15% of your score.
By following these tips, you can improve your credit score and get closer to that perfect 850.
5 Advantages of Having an Excellent Score
Here are some of the best 850 credit score benefits:
- You’ll save money on interest rates for loans — with an 850 credit score, you’ll be offered the best interest rates available on loans. This can save you hundreds of dollars in the long run.
- You’ll have more lending options — an excellent credit score means that you will meet the minimum requirements for most lenders.
- You may be eligible for rewards credit cards — with a high score, you may be able to qualify for cash-back credit cards or a 0% APR credit card.
- You may save money on car insurance: In states that offer credit-based auto insurance, having an 850 score could mean lower monthly premiums.
- You’ll have a lower security deposit for an apartment — when renting an apartment, people with excellent credit scores usually have to pay a lower security deposit.
What is the highest credit score you can have? It seems like 850 is the magic number. If you’re looking to get an 850 credit score, you can do a few things to help improve your chances.
First, make sure you keep updated on your credit score rating and know what factors influence your score. Second, use credit cards and loans responsibly and keep up with payments. Finally, if you have any negative items on your credit report, work on fixing them.
What is the lowest credit score you can have?
The lowest possible credit score is 300. If your score is below this, it’s likely that you have very poor credit and will have difficulty qualifying for loans or other forms of credit.
How are credit scores calculated?
Credit scores are calculated by taking five different factors into account. This includes things like your:
- payment history (35%)
- amounts owed (30%)
- length of credit history (15%)
- new credit (10%)
- credit mix (10%).
What is a 750 credit score?
A 750 credit score is very good. It means you have displayed responsible borrowing and repayment behavior, and as a result, you’re likely to receive favorable rates when you apply for new credit products.
For example, you may be approved for a mortgage with a low-interest rate or qualify for the best rates on auto loans and other types of loans. Additionally, insurance companies often give their best rates to those with high credit scores.
Is a 900 credit score possible?
Technically, yes, it’s possible, but only for industry-specific credit-scoring models. FICO creates specific scores for auto loans, mortgage loans, and credit cards. These credit scores begin from 250 and can go to up to 900.
What percentage of the population has a credit score above 800?
Approximately 20% of Americans have a credit score of 800 or above. This is considered an excellent credit score, and it puts you in good standing with most creditors.
What is a perfect credit score?
Generally speaking, a perfect credit score would be exceptionally high on the standard measurement scale – typically above 750 or 800.
A perfect credit score also means having an excellent track record regarding your previous borrowing decisions – having repaid loans on time or ahead of schedule and avoiding missed payments or defaulting entirely.
Ultimately, having an impeccable credit score is an essential indicator of financial responsibility, maturity, and overall financial health.
What is the highest credit score? The highest score on the most commonly used credit scoring models, FICO and VantageScore, is 850. If we’re talking about industry-specific models, then the right figure is 900.