Your credit score ranges from 300 to 850. There are technically many types of credit scores, and not all of them use this scale, but the most popular ones do. That includes the FICO® Score system, which is what's most widely used by lenders.
Since higher scores are better, an 850 is a perfect score. It's also notoriously difficult to reach. While improving your credit score isn't too difficult, getting the highest possible score is. It takes many years and quite a bit of work managing your credit.
So, just how rare is it to have a perfect credit score? A credit score study by The Motley Fool Ascent has the answer. After we look at that, we'll also cover why perfection isn't necessary when it comes to your credit score.
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How many Americans have an 850 credit score?
Only 1.31% of Americans with a FICO® Score have a perfect 850 credit score. While a score this high is rare among any demographic, older generations are more likely to have perfect credit. Baby boomers make up a whopping 59.4% of the people with an 850 credit score. Millennials, on the other hand, make up just 4.1%, and Generation Z a mere 0.1%.
In terms of actual numbers, there were 258 million credit-eligible people as of the 2020 U.S. Census. However, some adults don't have enough data on their credit history for FICO to be able to calculate a score for them. They're considered "credit invisible."
FICO data scientists have estimated that 232 million U.S. consumers could be scored under the FICO® Score system. Based on that number, about 3.04 million Americans would have an 850 credit score.
Nobody needs perfect credit
The financial benefits of perfect credit are the same as having very good credit. The only special thing about perfect credit is bragging rights -- but showing off an 850 probably isn't going to make you the life of the party.
In terms of how high your credit score needs to be, a FICO® Score of at least 760 is fine. At that point, your score is high enough to pass any credit check, qualify for any financial product, and get the lowest rates on loans. You'll likely be able to qualify for all these:
- Best credit cards
- Low-interest mortgages
- Low-interest personal loans
To be clear, no credit score guarantees you'll be approved for whatever you want. You can still get denied for a credit card or mortgage with a 760 credit score, or an 850. Lenders look at much more than just your credit score. But once you have a FICO® Score of 760, your credit won't hold you back from anything.
To sum it up, an 850 credit score is a lot of work for no real reward. A high credit score is beneficial, but an 850 isn't necessary.
How to improve your credit score
If it's not where you want it to be yet, here are a few tips that will help you raise your credit score:
- Have at least one credit card you use regularly. To build credit, you need to borrow money and pay it back. A credit card is one of the best ways to do this. If you pay your full balance every month, you don't get charged credit card interest.
- Always pay your bills by the due date. Your payment history is the most significant factor in your credit score. A late payment (meaning one that's past due by 30 days or more) on a credit card or loan can severely damage your credit.
- Keep your balance below 30% of your credit limit. For example, if your card has a limit of $10,000, aim to always have the balance below $3,000. Another important part of your credit score is your credit utilization ratio, and using too much of your credit can cause issues.
- Be selective when applying for new credit cards and loans. Opening new accounts and applying for new credit cards can lower your credit score. When you're trying to improve your credit, it's best to keep these to a minimum.
Some people think building credit is complicated, but it's really not. If you follow those habits, you can make fast progress with your credit score.
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FAQs
In the U.S., only about 1.7 percent of the scorable population had a perfect 850 FICO credit score in April 2023, according to FICO data. This suggests that for most people, a perfect score is simply too hard to reach — but it also suggests that it's not really necessary, either.
Is a 900 credit score possible? ›
Highlights: 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.
How rare is an 830 credit score? ›
Your score falls in the range of scores, from 800 to 850, that is considered Exceptional. Your FICO® Score and is well above the average credit score. Consumers with scores in this range may expect easy approvals when applying for new credit. 21% of all consumers have FICO® Scores in the Exceptional range.
How rare is 825 credit score? ›
Membership in the 800+ credit score club is quite exclusive, with fewer than 1 in 6 people boasting a score that high, according to WalletHub data.
Is there a difference between 800 and 850 credit scores? ›
Just getting your credit score over 800, officially an excellent credit score, gives you the same advantages and benefits that come with a perfect credit score. Experian reports that 21 percent of all consumers have achieved excellent credit, compared to just 1.6 percent with a perfect 850 credit score.
Is a 1000 credit score possible? ›
A credit score of 1,000 is not possible because the standard credit score range used by FICO and VantageScore is 300 to 850. Other credit scoring models have a high of 900 or 950, but they are industry-specific and only used by certain financial institutions.
Does anyone have a 950 credit score? ›
Is a 950 credit score possible? In most conventional credit scoring systems, such as FICO and VantageScore, a credit score of 950 is not possible, as they typically have a maximum score of 850. However, some custom or industry-specific scoring models might use a different scale, but they are not as widely used.
Can I buy a house with a 830 credit score? ›
An 830 credit score is often considered very good — or even excellent. With excellent credit, your credit scores become more of a bridge and less of a roadblock — a high score can help you qualify for premium rewards credit cards, auto loans and mortgages with the best terms.
What is the average credit score by age? ›
Average FICO 8 score by age
| Age group | Average FICO 8 score |
|---|
| 18-29 | 680 |
| 30-39 | 692 |
| 40-49 | 706 |
| 50-59 | 724 |
1 more rowMar 7, 2024
You'll typically need a credit score of 620 to finance a home purchase. However, some lenders may offer mortgage loans to borrowers with scores as low as 500. Whether you qualify for a specific loan type also depends on personal factors like your debt-to-income ratio (DTI), loan-to-value ratio (LTV) and income.
What is a bad VantageScore credit score?
- Very Poor: 300-499.
- Poor: 500-600.
- Fair: 601-660.
- Good: 661-780.
- Excellent: 781-850.
How many Americans have an 850 credit score? Only 1.31% of Americans with a FICO® Score have a perfect 850 credit score. While a score this high is rare among any demographic, older generations are more likely to have perfect credit. Baby boomers make up a whopping 59.4% of the people with an 850 credit score.
What is the poorest credit score? ›
Well, there are several credit score ranges. For instance, 780–850 may be considered "excellent" while 720–780 may be seen as "good." But when it comes to a range that may be seen as bad, a score between 300 (the lowest) and 660 fits into the “poor” category.
Which person is most likely to have the best credit score? ›
About 70% of people with perfect credit scores are baby boomers (defined by Experian as people age 57 to 75) and members of the silent generation (ages 75 and above). Generation X (ages 41 to 56) account for about 22% of people with perfect scores.
What interest rate can I get with an 850 credit score? ›
Mortgage rates as of May 15, 2024
| FICO® score | APR | Monthly payment * |
|---|
| 760-850 | 6.304% | $1,858 |
| 700-759 | 6.526% | $1,901 |
| 680-699 | 6.703% | $1,936 |
| 660-679 | 6.917% | $1,979 |
2 more rowsA 750 credit score is Very Good, but it can be even better. If you can elevate your score into the Exceptional range (800-850), you could become eligible for the very best lending terms, including the lowest interest rates and fees, and the most enticing credit-card rewards programs.
What is the highest credit score ever recorded? ›
And when people talk about achieving the “highest” credit score possible, they're usually talking about the ever-elusive 850 FICO® Score. Earning a perfect 850 FICO Score isn't common, but it's certainly possible.
What is the lowest credit score possible? ›
What is the lowest credit score possible? Generally, credit scores range from 300 to 850, making 300 the lowest possible credit score. But it's important to note that you typically have more than one credit score. And they may differ depending on the credit-scoring company and when they were calculated.
Who has a credit score of 1000? ›
Although a 1,000 score isn't possible, an excellent credit score is attainable.
Has anyone gotten an 850 credit score? ›
Although a lot of people might like the idea of a perfect credit score, they'd likely have a hard time actually achieving it. In the U.S., only about 1.7 percent of the scorable population had a perfect 850 FICO credit score in April 2023, according to FICO data.
