When it comes to your credit score, the higher it is, the better. While credit scores come in a variety of forms, the majority of scoring models concur that the maximum credit score that can be obtained is 850.
Here’s what you need to know about how credit scores work and how to achieve that perfect number.
The quest for the perfect credit score is a common one. But what exactly is the highest credit score you can achieve? And is it even possible to reach a perfect 900?
The Short Answer: No, a credit score cannot be 900.
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.
Why Can’t You Get a 900 Credit Score?
The two most widely used credit scoring models, FICO and VantageScore, both have a maximum score of 850. This means that regardless of how financially responsible you are, your credit score will never exceed 850.
What Does a Perfect Credit Score Mean?
Having an impeccable credit history is indicated by a perfect credit score of 850. This indicates that you have continuously maintained a healthy balance across a variety of credit accounts, paid your bills on time, and kept your credit utilization low.
Benefits of Having a Perfect Credit Score
Having a perfect credit score can open up a world of financial opportunities. Here are just a few of the benefits you can enjoy:
- Lower interest rates: You’ll qualify for the lowest interest rates on loans, credit cards, and mortgages.
- Better loan terms: You’ll be able to secure better loan terms, such as lower down payments and longer repayment periods.
- Increased credit limits: You’ll be eligible for higher credit limits, which can give you more financial flexibility.
- Better insurance rates: You may qualify for lower insurance premiums.
- Easier time renting an apartment: Landlords are more likely to rent to you if you have a perfect credit score.
How to Get a Perfect Credit Score
While achieving a perfect credit score is challenging, it’s definitely possible with the right strategies. Here are a few tips:
- Pay your bills on time: This is the most important factor in your credit score. Even a single late payment can significantly impact your score.
- Keep your credit utilization low: Aim to keep your credit utilization ratio below 30%. This means using less than 30% of your available credit.
- Maintain a healthy mix of credit accounts: Having a mix of credit accounts, such as credit cards, installment loans, and mortgages, can help improve your credit score.
- Avoid opening new credit accounts: Every time you apply for a new credit account, it results in a hard inquiry on your credit report. Too many hard inquiries can lower your credit score.
- Become an authorized user on a credit card with good credit history: This can help you build your credit history without having to open a new credit account.
Is a 900 Credit Score Worth the Effort?
Although having a perfect credit score is undoubtedly impressive, it’s crucial to keep in mind that financial success does not necessarily require it. Generally speaking, a credit score of 750 or higher is sufficient to be eligible for the majority of loans and credit cards at favorable rates.
Ultimately, the decision of whether or not to pursue a perfect credit score is up to you. If you’re willing to put in the effort, it can open up a world of financial opportunities. However, if you’re not sure if it’s worth the effort, you may be perfectly happy with a good credit score.
Additional Resources
- LendingTree: What Is the Highest Credit Score?
- MoneyLion: Is It Possible To Have a 900 Credit Score?
Frequently Asked Questions
Q: What is the highest credit score I can achieve?
A: The highest credit score you can achieve is 850.
Q: What is a good credit score?
A: A good credit score is generally considered to be 750 or higher.
Q: How can I improve my credit score?
A: You can improve your credit score by paying your bills on time, keeping your credit utilization low, maintaining a healthy mix of credit accounts, and avoiding opening new credit accounts.
Q: Is a 900 credit score worth the effort?
A: The decision of whether or not to pursue a perfect credit score is up to you. If you’re willing to put in the effort, it can open up a world of financial opportunities. However, if you’re not sure if it’s worth the effort, you may be perfectly happy with a good credit score.
What affects your credit score
Regardless of the model used, your credit score is based on your credit activity.
There are five factors that go into how your FICO credit score is calculated:
- Your payment history: 35%
- The amount of debt you owe: 30%
- The length of your credit history: 15%
- New credit inquiries: 10%
- Types of credit you have: 10%
VantageScore also considers five factors to calculate your score, though they are weighed a bit differently:
- Total credit usage: Extremely influential
- Types of credit: Highly influential
- Payment history: Moderately influential
- Length of credit history: Less influential
- New credit accounts: Less influential
Based on this score composition, a few things are evident: You can raise your credit score by making on-time bill payments and using less of your credit limit. Having a long credit history and a healthy mix of credit accounts also help.
If your credit is really bad you can look to improve it with a credit repair company. Watch out for credit repair scams; they can cost you a lot of money and in some cases, even land you in legal hot water.
VantageScore vs. FICO: What is the highest credit score?
The two most popular credit scoring models, VantageScore and FICO, both identify 850 as the highest score out of a base range of 300 to 850.
FICO is the standard evaluation measure used by 90% of top U. S. lenders since its introduction in 1989. The highest credit score you can achieve with this model is 850.
FICO provides industry-specific scores tailored for auto lenders (FICO Auto Score) and credit card companies (FICO Bankcard Score). These industry-specific FICO Scores emphasize your financial behaviors with a particular financial product and have a slightly different score range of 250 to 900.
Additionally, each of the three national credit reporting bureaus—Equifax, Experian, and TransUnion—has a distinct version of their scores available through FICO.
| Credit rating | Credit score range |
|---|---|
| Exceptional | 800-850 |
| Very good | 740-799 |
| Good | 670-739 |
| Fair | 580-669 |
| Poor | 579-300 |
VantageScore is another credit-scoring model used by lenders to determine your eligibility for credit. It was collaboratively developed by the three credit bureaus — Equifax, Experian and TransUnion.
Even though VantageScore isn’t as popular as FICO, it’s still crucial to monitor it because more than 2,600 financial institutions use it.
Like FICO, the VantageScore 3. 0 and 4. 0 models range from 300 to 850. The highest credit score you can achieve with VantageScore is 850.
| Credit rating | Credit score range |
|---|---|
| Excellent | 781-850 |
| Good | 661-780 |
| Fair | 601-660 |
| Poor | 500-600 |
| Very poor | 300-499 |