Shawn Nelson, a 54-year-old heavy equipment operator who works in the Alaskan oilfields, has a perfect credit score.
"I hit 800 a few years ago, and then I went to a 820, and then 830, and I was like, 'S---, I'm going to try do this,'" he tells CNBC Make It.
In March, his FICO Score 9 hit 850. That's the highest you can go using the latest version of FICO's base scoring model, though other scores specific to different types of loans range further.
"Only the top 1 or 2 percent of people will have a 'perfect' 850 credit score," Rod Griffin, director of consumer awareness at Experian, tells CNBC Make It. "And it probably won't stay that way. Scores move up and down as your credit history changes. If you increase your balances, open a new account, or have old information fall off your report, your score might slip down or bounce back up."
But if Nelson continues to be diligent, his score could stay perfect.
Here's what he did to get to 850, which he shares because "hopefully this can help somebody out there."
He keeps his balances low
Nelson has eight open credit cards, including one store-brand card and one with an annual fee.
Most people with excellent scores have an average of three open cards and three that have been closed, according to a recent FICO analysis. Nelson says he uses two or three at a time and then rotates after a year or two to ensure issuers don't close any of his accounts, since that can hurt your score if it reduces your credit limit. Nelson's limit is just over $100,000, which allows him to keep his utilization ratio low. It rarely exceeds 5 percent.
If you're planning on managing this many cards, "you got to be responsible," he warns. "It can get dangerous."
Shawn Nelson, 54, on the Kenai River in Soldotna, Alaska
Source: Shawn Nelson
He has multiple lines of credit
Having a balanced mix of different types of credit accounts for about 10 percent of your FICO score. In addition to credit cards, Nelson has a mortgage, a home equity line of credit and multiple auto loans.
In the past 10 years, he's bought three used cars. He likes to pay for half up front and the remainder over the course of a four- or five-year loan. His mortgage is also half paid off.
Nelson hasn't been late on a payment since he was in his 20s, which he says is largely thanks to having a consistent paycheck.
"Having a steady job and being able to pay your bills on time — I think that's where a lot of people can get messed up, out of work for a while," he says. "Of course, all it takes is a couple late payments and that'll plummet your credit rating for several years."
You don't need 30 years of perfection to achieve an excellent score, though. All it takes is a few years of good credit history, according to Griffin. And the experts agree that any score in the excellent range, higher than 750 or 760, will usually get you the best deals. "Higher scores than that are icing on the cake," says Griffin.
What you do need to do to earn a perfect score is to pay your bills on time, all of the time. Collection accounts and late payments are non-existent on the credit reports of consumers with perfect credit scores.
The longer you've been using credit, the more it means to your credit score. Members of the 800 Club average just under 22 years of using credit. Even the youngest ones, Millennials, average more than 14 years.
Credit scores 800 and up are considered excellent. Someone with a VantageScore that's 600 or less is considered to have poor or very poor credit. A fair credit rating is anywhere between 601 and 660. Scores between 661 and 780 are considered good credit scores.
The time it takes to raise your credit score from 500 to 700 can vary widely depending on your individual financial situation. On average, it may take anywhere from 12 to 24 months of responsible credit management, including timely payments and reducing debt, to see a significant improvement in your credit score.
While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
Your credit score is based on your personal credit history, not on your location. If you have an excellent credit score, you'll still have opportunities to borrow money at attractive rates regardless of where you live.
Credit scores help lenders decide whether to grant you credit. The average credit score in the United States is 705, based on VantageScore® data from March 2024.
Highlights: Credit scores are three-digit numbers designed to represent the likelihood of paying your bills on time. Credit scores help lenders decide whether to grant you credit. The average credit score in the United States is 705, based on VantageScore® data from March 2024.
A FICO® Score of 650 places you within a population of consumers whose credit may be seen as Fair. Your 650 FICO® Score is lower than the average U.S. credit score. Statistically speaking, 28% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future.
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