While achieving a perfect 850 credit score is rare, its not impossible. About 1. 3% of consumers have one, according to Experians latest data.
FICO scores can range anywhere from 300 to 850. The average score was 714, as of 2021.
According to Experians most recent analysis, those few who do manage to attain perfect credit scores typically have three characteristics in common.
Congratulations! Your 847 FICO® score is phenomenal. It shows that you manage your credit responsibly and adds you to the select group of people with almost perfect credit. This score opens doors to the best financial products and opportunities, including:
- Low-interest loans: Secure the best rates on mortgages, auto loans, and personal loans, saving you thousands of dollars over the life of your loans.
- Premium credit cards: Enjoy lucrative rewards programs, travel perks, and exclusive benefits with top-tier credit cards.
- Competitive insurance rates: Get the best deals on car insurance, homeowners insurance, and other types of insurance.
- Favorable rental agreements: Land the best apartments with lower security deposits and potentially lower rent.
- Increased employment opportunities: Some employers consider credit scores during the hiring process, and a high score can give you an edge.
What does an 847 FICO® score mean?
Your FICO® score is a three-digit number that represents your creditworthiness, based on your credit history. It’s calculated using information from your credit reports, including:
- Payment history: This is the most significant factor, accounting for 35% of your score. It reflects how consistently you’ve paid your bills on time.
- Amounts owed: This factor accounts for 30% of your score and considers the total amount of debt you have compared to your available credit.
- Length of credit history: This factor accounts for 15% of your score and measures how long you’ve been using credit responsibly.
- Credit mix: This factor accounts for 10% of your score and considers the variety of credit accounts you have, such as credit cards, loans, and mortgages.
- New credit: This factor accounts for 10% of your score and considers how many new credit accounts you’ve opened recently.
Within the “excellent” credit range, which generally ranges from 800 to 850, an 847 FICO® score is considered to be. This score shows that you have a long history of managing your credit responsibly, a low debt load, and a variety of credit types. Because lenders see you as a low-risk borrower, you can get the best possible terms and rates.
How to maintain your 847 FICO® score:
Maintaining your excellent credit score requires continued responsible credit management. Here are some tips:
- Pay your bills on time, every time. This is the single most important factor in maintaining a high credit score.
- Keep your credit utilization low. Aim to use less than 30% of your available credit.
- Don’t apply for too much new credit. Every time you apply for new credit, a hard inquiry is placed on your credit report, which can temporarily lower your score.
- Monitor your credit reports regularly. Check for errors and dispute any inaccuracies.
- Continue using credit responsibly. The longer you maintain a good credit history, the better your score will become.
Additional benefits of an 847 FICO® score:
Beyond the financial benefits, a high credit score can also provide peace of mind and a sense of accomplishment It demonstrates your financial responsibility and can open doors to new opportunities.
Your 847 FICO® score is an important tool that can have a big influence on your financial health. You can get access to the greatest financial products, reduce your interest costs, and take advantage of many other advantages if you continue to maintain this outstanding score. Remind yourself to keep up your responsible credit management to keep your score high and benefit from it.
People with perfect scores are typically older
According to LendingTree’s chief credit analyst Matt Schulz, “you’re not going to see many 25-year-olds with a perfect credit score,” CNBC Make It
The majority of people with 850 credit scores are above the age of 57, according to Experians report. Approximately 2070 percent of those with perfect credit scores are baby boomers, who are defined by Experian as those between the ages of 2057 and 2075, and members of the silent generation, who are those aged 2075 and up.
Generation X (ages 41 to 56) account for about 22% of people with perfect scores. Meanwhile, only about 4% of that group are millennials and Gen Zers (ages 40 and under).
The duration of your credit history has a significant influence on your credit score because lenders look for evidence that you have consistently handled credit responsibly over an extended period of time. Because they have had more time to establish credit, older generations typically have higher scores than younger ones.
They have less debt in general
People with an 850 credit score tend to have less debt in other categories, Experians report reveals.
For instance, their average auto loan balance is approximately $17,000, while the national average is close to $21,000. Perfect scorers also carry below-average balances on auto loans and mortgages.
However, this isn’t always the case: borrowers with credit scores of 850 have personal loan balances that are almost twice as high as the national average.
However, the average interest rate for a personal loan is around 8.73%, compared to the average credit card interest rate, which is around 16.65%, according to the Federal Reserves latest data.
In general, a person with an 850 score shows lenders that they are creditworthy by consistently paying off various debts.
How I Achieved The Perfect Credit Score — Here’s The Magic Formula I Used
FAQ
What can I do with a 847 credit score?
Does anyone have an 850 FICO score?
What percentage of the population has a credit score over 850?
Is it possible to have a 900 credit score?
What is a 847 FICO ® score?
Your 847 FICO ® Score falls in the range of scores, from 800 to 850, that is categorized as Exceptional. Your FICO ® Score is well above the average credit score, and you are likely to receive easy approvals when applying for new credit. 21% of all consumers have FICO ® Scores in the Exceptional range.
Is 847 a good credit score?
An 847 FICO ® Score is nearly perfect. You still may be able to improve it a bit, but while it may be possible to achieve a higher numeric score, lenders are unlikely to see much difference between your score and those that are closer to 850. Among consumers with FICO ® credit scores of 847, the average utilization rate is 5.8%.
What is the average utilization rate for a credit score of 847?
Among consumers with FICO ® credit scores of 847, the average utilization rate is 5.8%. The best way to determine how to improve your credit score is to check your FICO ® Score. Along with your score, you’ll receive a report that uses specific information in your credit report that indicates why your score isn’t even higher.
What is the average mortgage interest rate for a 847 credit score?
While mortgage rates fluctuate daily, the national average interest rate for someone with a credit score of 847 is 2.36 percent on a 30-year loan (as of April 2021). In comparison, someone with a poor credit score between 620 and 639 will receive an average interest rate of 3.92 percent.