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In a nutshell
The highest credit score possible is 850, but you don’t need to reach this score to get the best deals.
- Your credit score is determined by several factors including payment history and how much of your credit limit you utilize.
- It’s not always necessary to have a spectacular credit score to qualify for the best deals, but improving your credit to reach the “excellent” range won’t hurt.
- Monitoring your credit regularly can help you stay on top of your score.
What’s the highest credit score possible?
The highest credit score possible is 850, and it's known as a perfect or excellent credit score. It's the most sought-after credit rating among consumers, as it reflects a very high level of financial responsibility and trustworthiness in managing your credit obligations.
Credit scores are calculated using different algorithms created by financial institutions and credit bureaus. The most widely used credit score model is the FICO® Score, developed by the Fair Isaac Corporation. It's based on a scale from 300 to 850, with higher scores indicating better creditworthiness. Other models, such as VantageScore and TransRisk, also use a similar range for their credit scoring.
However, keep in mind that having a high credit score is only one aspect of your overall financial health. It's essential to maintain good money management practices and not solely rely on your score for financial decisions. Though it can be an excellent tool for assessing your creditworthiness and overall financial behavior, it doesn't tell the whole story.
Understanding credit score ranges
Credit scores typically fall between 300 and 850, and a higher score signifies better creditworthiness. This three-digit number is calculated based on several factors: your history of repaying debts, the types of credit you use, the duration of your credit history, new credit you've acquired and the current balances on your accounts.
Each scoring model, whether it's FICO or VantageScore, has its unique algorithm, but they generally categorize credit scores as follows:
- Excellent: 800-850
- Very Good: 740-799
- Good: 670-739
- Fair: 580-669
- Poor: 300-579
FICO vs. VantageScore
The two primary credit-scoring models are FICO and VantageScore. The FICO Score, first introduced in 1989, is used by the vast majority of lenders to determine your creditworthiness. VantageScore, developed by the three major credit bureaus (TransUnion, Equifax and Experian) emerged in 2006 as a competitor to FICO. It's designed to provide a more consistent view of your credit profile.
While both FICO and VantageScore use similar key factors to calculate credit scores, their algorithms and the way they weigh these factors differ. FICO historically has put more emphasis on your payment history, whereas VantageScore places a higher emphasis on your total credit utilization and the average age of your accounts.
Advantages of having an excellent credit score
An excellent credit score opens many financial doors. It can mean lower interest rates and more favorable terms on credit cards, mortgages and loans. Lenders view individuals with high credit scores as low-risk. This trust can translate to easier approval for rental housing, employment, insurance premiums and even better deals on cell phone plans and utility services.
Related: Best credit cards for excellent credit
Some common benefits of having a high credit score include:
- Lower interest rates.
- Access to higher credit limits.
- Easier credit approval.
- Lower security deposits for utilities.
- Savings on interest payments.
- Better approval rates for loans, homes and even employment.
How to get a perfect credit score
Achieving a perfect credit score may seem challenging, but it's not impossible. It demands a disciplined approach to your credit management.
Monitor your credit regularly
Stay on top of errors and fraud by checking your credit reports often. You can use tools like myFICO and Experian’s credit monitoring service to help you stay updated on your credit score and to dispute any inaccuracies.
myFICO charges a fee to check your score (at least $19.95 per month), but this includes credit monitoring, the option to see your score from the three major credit bureaus and your scores for mortgages and auto loans. Experian offers free credit monitoring and uses the FICO Score 8 model, a type of credit scoring based on the FICO model.
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| Fees | $0 - $24.99 | $0 - $39.95 |
Pay your bills on time
Delinquent payments can drastically drop your score. Consistently paying your bills by the due date improves your payment history, a vital factor in your credit score.
Keep your credit card balances low
Maintaining a low credit utilization ratio shows that you are not heavily reliant on credit. Aim to keep your balances below 30% of your available credit to gradually improve your credit score.
Limit your credit inquiries
Each “hard” credit inquiry can shave a few points off your score. Minimize the number of new credit applications you make to avoid dinging your credit.
Diversify your credit mix
Having a variety of credit types can positively influence your score, but you shouldn’t open accounts you don't need just to increase your diversity.
Maintain long-standing accounts
The length of your credit history can have a high impact on your score. Keeping your oldest accounts open even if you don't use them often can gradually increase your credit score.
Reaching a perfect credit score
Obtaining a high credit score requires consistent, responsible financial habits. It affords you the luxury of gaining access to certain credit opportunities such as competitive interest rates or access to the best rewards credit cards. However, achieving the maximum possible score is not often necessary to obtain the best deals: a score above 770 will often achieve that.
If you're looking to increase your credit score this year, the best thing you can do is start monitoring your score and prioritize paying your bills on time. Consider the other factors that directly impact your credit as well, including the age of your accounts, credit utilization and the number of hard inquiries you make.
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Your credit score is an important number that helps lenders and creditors determine which loans you qualify for and the interest rate you’ll receive. Credit scores also demonstrate your level of financial responsibility when it comes to successfully repaying debt. Typically, the higher your credit score, the better lending opportunities you’ll have.
Frequently asked questions (FAQs)
Can you get a 900 credit score?
As of 2024, no traditional credit scoring models offer a 900 credit score. The commonly used models like FICO and VantageScore have a maximum of 850. Some other types of credit scoring models (such as the FICO Auto Score and the FICO Bankcard Score) score up to 900, but these scoring models are only used by certain lenders for specific purchases such as auto loans or credit card applications.
Has anyone gotten a 850 credit score?
Yes, some individuals do maintain an 850 credit score. They typically practice exceptional financial behavior, such as a perfect payment history, low credit utilization and a long credit history, among other positive credit practices.
How many people have a credit score over 800?
Roughly 23% of consumers have credit scores above 800 according to a report by FICO. This group enjoys the best credit offers and terms, making them prime candidates for loans and other credit-related services.
What is the average US credit score?
The average FICO score in the United States is 715, according to Experian. It's been climbing steadily over the years, reflecting a generally improving credit landscape among Americans.
This content is created by AP Buyline in accordance with AP’s editorial guidelines and supervised and edited by AP staff. Our evaluations and opinions are not influenced by our advertising relationships, but we may earn commissions from our partners’ links in this content. Learn more about AP Buyline here.
