Getting a perfect credit score is a notable financial goal. See what impacts your credit score – and what it takes to get a perfect 850 FICO score.
This article is meant to be a general reference source; it is not meant to offer information specific to American Express goods or services. Similar goods and services provided by various businesses will differ in their features, so before purchasing any financial product, you should always read the product details.
Perfect credit is uncommon among Americans, but it’s crucial to realize that it’s a moving target.
To obtain the best interest rates on credit cards and loans, you may not need to perfect your credit score—having excellent credit is usually sufficient.
The average FICO credit score in America has been steadily growing since 2013. 1 As of 2021, the average score stood at 714, which is considered good credit. However, what about the elusive 850 credit score—which is rare but can be difficult to achieve—that stands for flawless credit? The good news is that having excellent credit can still benefit you even if your score isn’t perfect. Let’s examine what constitutes a perfect credit score, why having excellent credit is generally sufficient, and what actions you can take to raise your credit score.
Achieving a credit score of 800 is an impressive feat, but for those seeking financial perfection, the ultimate goal lies in reaching the coveted 850. This pinnacle of creditworthiness unlocks access to the best interest rates, loan terms, and financial products, paving the way for a brighter financial future.
While the journey from 800 to 850 may seem daunting, it’s not an impossible mission. With strategic adjustments to your credit habits and unwavering dedication, you can inch closer to that perfect score. Let’s delve into the key strategies that can propel you towards credit score nirvana:
1. Become a Master of Punctuality:
The foundation of an exceptional credit score lies in impeccable payment history Make it your mission to pay all your bills, including credit card balances, utilities, rent, and loans, before their due dates Even a single late payment can have a detrimental impact on your score, so consistency is paramount.
2. Curb Your Credit Card Cravings:
High credit utilization, the percentage of your available credit that you’re actually using, can be a major drag on your score. Aim to keep your credit card balances below 30% of your credit limit Ideally, strive to pay off your balances in full each month to minimize interest charges and maximize your credit score potential.
3, Embrace the Long Game:
Credit history plays a significant role in your credit score. The longer your positive credit history, the better. Avoid closing old accounts, as they contribute to the length of your credit history. Instead, focus on maintaining responsible credit card usage and on-time payments on those accounts.
4. Diversify Your Credit Portfolio:
A mix of credit accounts, including installment loans (like mortgages or auto loans) and revolving credit (like credit cards), demonstrates responsible credit management and can boost your score. However, ensure you manage these accounts responsibly and avoid overextending yourself.
5. Keep a Wary Eye on Inquiries:
Every time you apply for new credit, a hard inquiry is placed on your credit report, which can temporarily lower your score. Be mindful of applying for new credit only when necessary, and avoid multiple applications within a short period.
6. Embrace the Power of Dispute:
Review your credit reports regularly for any errors or inaccuracies. You can access your free credit reports from all three major bureaus (Experian, Equifax, and TransUnion) once a year at AnnualCreditReport.com. If you find any errors, dispute them immediately with the credit bureaus and the creditor responsible for the inaccurate information.
7. Seek Professional Guidance:
If you’re struggling to navigate the complexities of credit improvement, consider seeking guidance from a credit repair specialist or financial advisor. They can help you develop a personalized strategy and provide expert advice to optimize your credit score.
The Road to 850: A Marathon, Not a Sprint
Remember, reaching a credit score of 850 is a marathon, not a sprint. It requires consistent effort, patience, and a commitment to responsible credit management. By embracing the strategies outlined above and maintaining financial discipline, you can gradually climb towards that perfect score and unlock the financial benefits it brings.
Let’s Chat!
Do you have any questions or experiences related to boosting your credit score? Share your thoughts in the comments below, and let’s continue the conversation.
Tips for Maintaining a Healthy Credit History
Nevertheless, you might want to think about following these wise credit advice if you’d like to take action to raise your credit:
- Pay your credit card bills often. To prevent carrying a balance, some “800 club members” pay their credit card bills every week rather than just once a month. 4.
- Keep a solid payment history. Always pay on time and never miss a payment. Your payment history makes up 35% of your FICO score. 5.
- Consider your credit mix. Credit score providers prefer to see a broad range of credit sources, such as several credit cards and loans. Naturally, though, taking out new loans if you are unable to repay them makes no sense. Moreover, it makes no sense to put off debt repayment in order to maintain variety. Only 10% of your FICO score is determined by your credit mix, and over the course of a long life, sound financial habits are usually more significant than reckless spending.
- Increase your credit limit. It can be simpler to maintain a lower credit utilization ratio with a higher credit limit, which can improve your credit score. You can request an increase in credit limit or apply for a new credit card to raise your current one. However, ensure that your finances can support the higher limit—spending sensibly is more crucial.
- Don’t close old accounts. If you can help it, keep old accounts open. A single individual with an 850 credit score mentioned that his oldest account is more than 3,000 years old, significantly extending the length of his credit history (200%E2%80%93%), which accounts for 2015% of your FICO credit score. 6.
- Regularly monitor your credit report. Regularly review your credit report, looking for any mistakes that might be lowering your score. For example, unauthorized hard inquiries can lower scores and indicate fraud.
- Create a new credit card only when absolutely necessary. A hard inquiry will be made by the credit issuer each time you open a new credit account. When thinking about opening a new account, bear in mind that making hard inquiries will lower your score by a few points.
Does anyone have a 900 credit score?
FICO scores only go as high as 850. Although they are less frequently used, some credit models—such as the FICO Auto Score and FICO Bankcard Score models—can reach as high as 900.
How To Get Perfect 850 Credit Score for FREE
How do I get an 850 credit score?
These are the areas you have to master on the path to an 850 credit score: Payment history (35% of your FICO score): Pay all of your credit card bills and other expenses on time. If you miss the deadline, resolve it as quickly as possible.
How do I get an 800 credit score?
Achieving an 800 credit score requires on-time payments to creditors, low credit utilization, a long credit history, a good mix of credit types, and occasional new credit applications. First, a refresher on credit scores.
Is 850 a good credit score?
“The more you pay attention to it, the better your credit tends to be,” Droske tells CNBC Select. We took a look at one of Droske’s credit reports that calculated he had an 850 score using the FICO 8 model (the most commonly used version) to see what components make up that perfect number.
What does a 800 credit score mean?
Better credit offers: An 800 credit score significantly boosts your chances of snagging the best credit cards, including cards reserved for people with excellent credit. On top of that, you’re also more likely to be accepted for mortgages, auto loans and other lines of credit.