The highest credit score possible is 850. Believe it or not, this score is achievable, but it’s not very common. Learn what kinds of consumers have managed to get an 850 credit score, what benefits a perfect credit score will give you, and how you can build the perfect credit score for yourself.
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What is the highest credit score?
The maximum credit score that FICO and VantageScore award in their main scoring models is 850.
Is an 850 credit score possible?
Getting an 850 credit score is possible, but difficult. According to FICO, fewer than 2% of scorable Americans achieved a perfect score in 2019. 1
In practice, achieving the perfect 850 isn’t necessary (although it can be psychologically satisfying). Having a FICO score above 800 or a VantageScore above 781 lands you in the “Exceptional” or “Excellent” credit score bracket. With a score this high, you can easily qualify for the same benefits as someone with a perfect score, like optimal interest rates.
Characteristics of consumers with excellent credit
Credit scoring companies keep the formulas they use to calculate credit scores private. That’s why, if you want excellent or perfect credit, it’s helpful to analyze the profiles of borrowers with great credit scores so you can learn how to follow in their footsteps.
According to a report by FICO, users with the highest credit scores generally have a few things in common, like: 2
- An average credit account age of 11 years
- A credit utilization rate (which tracks how much of your available credit you’re currently using) below 6%
- Below $3,000 in debt across their revolving accounts (i.e., credit cards)
FICO’s report also noted that:
- Less than 35% had applied for new credit in the past year
- 96% had never missed a payment
As one would expect, the two biggest takeaways are that perfect scorers make on-time payments and borrow responsibly. For example, their low credit utilization rates indicate that they don’t max out their credit cards.
What are the benefits of getting the highest credit score possible?
So you borrow responsibly, pay your credit card bills on time, and boost your credit score. What does it get you?
Most importantly, your credit score is used to determine your future loan qualifications and terms. However, a good credit score can also open doors for you in apartment hunting, securing a job, and locking down insurance.
Loan and credit-related benefits of a perfect credit score
Borrowing money is a near-necessity of modern life. Whether you’re buying a house or sending your kids to college, you’ll probably use loans and credit to finance many major milestones in your life.
There are four main credit-related benefits of getting a high credit score:
- More lending options: Many lenders have minimum scoring requirements, so having a high score gives you your pick of possible lenders. Additionally, you’ll be able to borrow larger loans, or have your choice of more diverse loan options.
- Lower interest rates: The higher your credit score, the lower your interest rate on new credit will be. For example, according to FICO’s loan calculator, if you have “Excellent” credit, you’ll pay 1.6% less interest than someone with “Fair” credit on a three-year car loan for $30,000. That’s the equivalent of paying $173 less each month, or $2,076 less annually.
- Better rewards and promotions: With a perfect credit score (or even just a very good one), you can qualify for top-of-the-line rewards credit cards, like ones with 0% introductory APR, travel miles, and cashback rewards.
- Security deposit waivers: If you have excellent credit, you’re less likely to be required to pay security deposits for credit cards or even for utilities like gas and electricity. Security deposits act as insurance against risky borrowers, so proving you’re a responsible borrower can earn you security deposit waivers in all kinds of situations.
Other benefits of having perfect credit
Outside of the lending industry, there are many benefits you can enjoy from maintaining a great credit score:
- Passing apartment screenings: With perfect credit, you’ll pass prospective landlords’ credit checks without trouble and will find it much easier to secure a rental. Landlords may even be willing to reduce your security deposit based on your proven history of responsible financial management.
- Employment approval: Technically, prospective employers can’t see your credit score when they check your credit report as part of a background check. That said, if you have excellent credit, you probably have an impressive credit report, which employers can see. The better your credit report, the better your odds of passing their background check.
- Cheaper insurance: If you live in a state where insurers are allowed to run your credit, a high score can get you lower insurance premiums. That’s because a good credit history indicates you’re less likely to file an insurance claim.
You don’t need a perfect credit score to enjoy these benefits
It usually isn’t necessary to have the maximum possible credit score to get the benefits mentioned above. You typically only need a score of 781 or above to qualify for the best rates and loan terms (781 is the threshold at which most lenders will consider you a “superprime” borrower, the best possible classification).
Generally, creditors care much more about the broad range where your credit falls than the specific score. That’s why having excellent credit will earn you the same perks as having a perfect score.
How to get the highest credit score possible
Aiming for a perfect 850 is great, but even securing a FICO score of 781 to 800 will make securing favorable loans and financial perks easier.
Whether you’re striving for perfection or you just to boost your score into the “Excellent” range, use the following strategies to improve your credit:
Dispute errors on your credit report
Unfortunately, credit reporting errors are more common than most people suspect. Check your report regularly, and dispute credit reporting errors you find right away.
You can visit AnnualCreditReport.com to get a free copy of your credit report and check it for mistakes. If you find any, send a credit dispute letter to the relevant credit bureau asking them to remove or change the incorrect information. Getting rid of unfair negative marks can make a big difference to your score.
Pay your bills on time
Paying your bills on time is the single most important step in securing a good credit score. Always pay your bills on time and (if possible) in full to show you’re managing your credit responsibly. Derogatory marks like late payments stay on your credit report for seven years and have a serious effect on your score. 3
Maintain a low debt-to-credit ratio
The scoring models penalize you for overspending on your credit cards and reward you for a lower debt-to-credit ratio (aka credit utilization rate). If you want to maintain a decent score, it might be enough to keep your debt-to-credit ratio below 30%, but if you want to make your way up to a score of 800 or higher, use less than 10% of your available credit. 4
Keep a mixture of accounts
Your credit mix (the variety of your credit accounts) makes up 10% of your FICO score. Aim to have at least one installment account (which is a loan you pay back in fixed amounts like a mortgage or personal, auto, or student loan) and one revolving account (like a credit card) to maintain a good credit mix.
Become an authorized user
If you don’t have a long credit history, ask a friend or family member with excellent credit to add you as an authorized user to their credit card. Provided they use their credit responsibly, being an authorized user will boost your credit score.
Don’t open too many credit accounts
You may think you can hack your credit score by opening multiple accounts to lower your credit utilization rate. This is a common misconception, as opening multiple new credit accounts can actually lower your score.
Only apply for credit when you need it in order to trigger fewer hard inquiries, which knock points off your score.
Ultimately, it’s not necessary to chase after the perfect credit score. As we mentioned, a credit score of 781 or higher generally qualifies you for the same perks. Instead, focus on using the strategies above to build your credit to a reasonable degree and your score will naturally improve over time.
