What Is the Highest Credit Score Possible?
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FICO® and VantageScore, the two primary credit scoring models, most commonly use a credit score range from 300-850. 850 is normally the highest credit score possible. However, some credit score ranges go up to 900.
According to 2019 FICO credit score statistics, merely 1.6% of all U.S. consumers had achieved a perfect credit score.
Fair Isaac Corporation (FICO) credit scores are the industry standard, used by roughly 90% of the institutions that provide auto loans, student loans, personal loans, credit cards, etc. The competing VantageScore model is used to a much lesser extent.
Both VantageScore and FICO are based on the credit history contained in consumer credit reports to calculate their scores. Equifax, Experian, and TransUnion are the three credit bureaus that compile all the credit history reported by lenders.
Consumers with the highest credit scores not only qualify for the best interest rates. People with excellent credit scores also often enjoy lower insurance premiums, have more choices in housing, and face fewer security deposit requirements when getting utility services.
Keep in mind that many employers will also include credit history as part of their hiring and background screening process for prospective new employees.
Credit Score Ranges
The following table outlines the range from bad credit to excellent credit scores for FICO Score 8 and VantageScore 3.0:
Credit Score Ranges
| Category | FICO Score 8 | VantageScore 3.0 |
| Excellent Credit Score | 800 to 850 | 781 to 850 |
| Very Good Score | 740 to 800 | 720 to 780 |
| Average Credit Score | 670 to 740 | 658 to 719 |
| Fair Credit Score | 580 to 670 | 601 to 657 |
| Bad Credit Score | Below 580 | 300 to 600 |
Source: Experian and TransUnion
Recent FICO score data indicates the average U.S. consumer’s credit score is approximately 716 and Experian generally classifies scores of 700 or more as good.
Having a good credit score can translate to significant savings. For example, an Experian report explained the difference between having a good credit score of 670 and a higher credit score of 720.
For example, on a 30-year fixed-rate mortgage loan of $250,000, the difference equaled $72 per month. Over the course of 30 years, that’s over a $2,000 difference!
FICO’s scoring models continue to be revised and updated i.e., FICO Score 8, 9, etc. In years since, FICO also has introduced several industry-specific scores such as for lenders involved in auto financing, mortgage loans, and more.
For example: the three major credit bureaus use the following versions specifically for auto loans.
- Experian: FICO Auto Score 2, 8 and 9
- Equifax: FICO Auto Score 5, 8, and 9
- TransUnion: FICO Auto Score 4, 8, and 9
Prospective home buyers should be aware of the typical minimum credit score requirements for mortgage loans. For example, a minimum score of 580 is needed for most standard FHA loans, and conventional and VA mortgages usually require a 620.
Similarities Between People with the Highest Credit Score
While a perfect credit score might be worthy of bragging rights, those with any score over 800 will also likely qualify for the best rates. Although no accepted standard or definite formula exists for reaching a perfect credit score, some commonalities exist.
Long Credit Histories
A FICO study in 2019 confirmed that most of those with perfect credit had a lengthy account and payment history within their credit reports. The information showed that the average oldest debt account in their reports was 30 years.
The majority of these individuals also tend to keep old credit cards and other revolving credit accounts open rather than simply closing or canceling dormant accounts once the credit card debt was zero.
As you review the many new credit studies from various sources that have analyzed consumers with exceptional credit, it becomes apparent that these individuals have proven their ability to responsibly manage various types of credit (credit mix) well over extended periods.
Perfect Payment Histories
Those with flawless credit reports generally have a very consistent debt payment history, which should come as no surprise because payment history is the single factor that is most heavily weighted when making these calculations.
An excellent payment history contains no late payments, debt collections, bankruptcies, evictions, foreclosures, tax liens, repossessions, etc. These consumers generally are well-organized and have developed positive habits of paying their bills on time.
According to FICO, those with a credit score that exceed 800 have merely a 1% chance of becoming delinquent on their current accounts. This translates to being viewed as extremely low-risk by potential lenders.
Low Credit Utilization
Consumers with superior credit have low credit utilization rates, meaning they use only a fraction of their available credit. FICO scores are influenced by the overall amount of debt an individual has, particularly the amount relative to their overall limit.
Credit utilization rates (ratios) are calculated using the following simple formula:
Credit Utilization Ratio = Total Current Debt / Total Available Credit
Generally speaking, lenders prefer that applicants have a credit utilization rate of less than 30%. Individuals that have “maxed out” a credit card may be construed as experiencing some financial problems that have caused them to rely on excessive amounts of debt.
FICO data shows that consumers with a score that exceed 800 use an average of only 7% of their overall available credit and those with an 850 use an average of only 4%.
Low Number of Recent Credit Inquiries
Although those with perfect credit do open new credit accounts from time to time, they do so infrequently. Keep in mind that whenever a consumer applies for a new credit account, the lender will conduct a credit check to assess the prospective borrower’s credit history.
The credit check process is also referred to as a credit inquiry or a “hard credit pull”. Credit inquiries are added to consumer credit reports as an entry that is visible to lenders and has a slight, temporary negative effect on your credit score of roughly five points.
What about those who are “shopping around” for the best interest rate when financing a home, car, or another large purchase? In recognition of this, multiple related inquiries that occur in a short period are generally consolidated into a single credit report entry.
Factors Affecting Your Credit Score
FICO scores are calculated based on the following five categories:
- Payment History (35%): A consumer’s history or track record regarding credit is the largest single consideration, based on the idea of past performance being a viable indicator of future behavior. Missed payments and other negative items remain on your record for up to seven years.
- Amounts Owed (30%): This factor involves the overall amount of debt that the borrower has incurred and the amount of current debt compared to the overall available credit (maximum). This credit utilization rate is expressed as a percentage and keeping rates below 10% is encouraged.
- Length of Credit History (15%): Demonstrating a positive credit history over a period of several years is an important factor in spurring your credit score. For this reason, young adults are encouraged to begin establishing a credit history.
- Credit Mix (10%): Lenders prefer that consumers prove their creditworthiness across two or more categories of credit accounts. This might include installment loans, such as auto loans or student loans, and revolving accounts such as credit cards.
- New Credit (10%): Lenders may have concerns if borrowers have recently opened several new credit accounts, as it may suggest unexpected financial problems have occurred. This is also true when applying for multiple accounts, which remain as visible “inquiries” on credit reports for two years.
How to Get the Perfect Credit Score
Those who achieve perfect credit scores understand that credit must be used, but more importantly — used wisely. There are various strategies and tools that will boost your credit score, but one critical principle involves exercising restraint by not borrowing more than you can afford.
The following are proven tools for improving credit.
Use a Credit Builder Loan
A credit builder loan, such as those offered by Credit Strong, is an installment loan specifically for consumers seeking to raise their credit score. Here, the loan funds are deposited into a secured savings account and remain there for the duration of the loan’s term.
During the term, you make fixed, affordable monthly payments toward the loan, which are regularly reported to all the major credit bureaus. After making all the payments, you will have access to the loan funds in the savings account.
Pay Your Bills on Time
Building an excellent credit history requires demonstrating an ability to make all required account payments — and doing so on time. Avoid borrowing more than you can reasonably afford to pay back and remain organized and aware of all payment due dates.
Look for opportunities to diversify your credit mix by establishing more than one type of account such as credit cards, auto loans, a home mortgage, etc. Consider using apps or other forms of technology that will assist you with managing your finances and making timely payments.
Keep Credit Utilization Low
Credit utilization applies specifically to revolving credit accounts, such as credit cards. While using credit is critical to improving your score, lenders prefer to see borrowers that use only a percentage of their available balances on these accounts.
A good credit utilization rate is loosely defined as below 30%; however, those with 800 credit scores or higher generally keep their rate at below 10%. Keep in mind that formally closing credit card accounts that you use infrequently can cause a spike in your utilization rate.
Limit Hard Inquiries
When a borrower applies for a new credit account, a “hard credit pull” or credit inquiry is added to the credit report as the prospective lender must review your credit history. While the application process is necessary, each separate inquiry causes a slight credit score reduction.
Credit inquiries remain on reports for two years; however, your FICO score only factors in any that occur in the prior 12 months. If you are preparing to finance a large purchase, avoid applying for multiple credit accounts if possible — particularly, if your score is below average.
When shopping around comparing rates among competing lenders, try to complete the process over a period of a few days. The formulas used to calculate credit scores will recognize when a borrower is assessing their options and typically will merge all these inquiries into one.
Don’t Cancel Credit Cards Needlessly
Avoid canceling credit card accounts that you rarely use, as lenders prefer that consumers establish a long history of credit use. This is particularly important if your overall credit history only extends back for a couple of years.
Your FICO score is influenced by the age of your oldest credit account, the age of your most recently opened account, and the average age across all accounts. Consider the following example that illustrates the average age calculation:
Card A: 1 year old
Card B: 2 years old
Card C: 6 years old
Current average = 1 + 2 + 6 = 9/3 = 3 years
Current average if Card C is closed = 1 + 2 = 3/2 = 1.5 years
In this example, leaving Card C open is the best option—unless it requires payment of an annual fee.
Applying the strategies discussed will position you to attain an excellent credit score. Remember that demonstrating consistency is critical to nudging a “good” score into the “exceptional” range.
CreditStrong helps improve your credit and can positively impact the factors that determine 90% of your FICO score.
