Having more credit cards than the average person, having less total debt, having lower credit card balances, and having higher personal loan balances are some of the noteworthy characteristics found in the data on customers with perfect FICO® Scores.
An 850 FICO® Score☉ can be likened to a perfect game of bowling. Although bowling a perfect game (12 strikes in a row) doesn’t guarantee you’re ready for the professional circuit, it does show that you’re doing something right.
And despite the somewhat ludicrous analogy, there are some similarities between a “perfect” credit score of 850 and a flawless game of bowling, including the necessity of discipline and consistency. Nonetheless, there are excellent bowlers whove never quite managed a 300 game.
An 850 FICO® Score isnt as uncommon as you might think. According to statistics, it’s likely that you’ve gone to a wedding, conference, church service, or other big event with someone who received a perfect score. As of the third quarter (Q3) of 2021, 1. 31% of all FICO® Scores in the U. S. stood at 850.
Experian analyzed data from Q3 2021 to highlight the characteristics of U. S. consumers who held an 850 score. Heres what those consumers have in common.
Yo, credit gurus! Ever wondered if that elusive 850 credit score is all it’s cracked up to be? Well, buckle up, because we’re about to dive deep into the world of perfect credit, uncovering the juicy details of its benefits and potential drawbacks.
Spoiler alert: It’s not all sunshine and rainbows, but it’s definitely not a bad thing either. Let’s break it down, shall we?
The Allure of the 850: A Glimpse into Credit Nirvana
Imagine this: you stroll into a bank, loan application in hand, and the loan officer practically throws money at you. Okay, maybe not literally, but that’s the kind of power an 850 credit score can wield. It’s like a golden ticket to the land of financial freedom, unlocking a treasure trove of benefits:
- Rock-bottom interest rates: Kiss those high-interest nightmares goodbye. With an 850, you’ll likely snag the lowest rates on loans, mortgages, and even credit cards, saving you a ton of cash in the long run.
- Access to exclusive offers: Think premium credit cards with lavish rewards, VIP treatment from lenders, and even special discounts on insurance and other services. The 850 club opens doors you didn’t even know existed.
- Improved financial security: A high credit score screams “responsible borrower,” boosting your chances of loan approvals and reducing the likelihood of getting denied for credit. It’s like having a financial safety net that catches you when you need it most.
But Wait, There’s More: The Not-So-Glamorous Side of a Perfect Score
Credit champions, calm down! Although an 850 score is unquestionably amazing, it is not without its peculiarities. Here’s the lowdown on the potential downsides:
- The pressure to maintain perfection: Keeping that 850 pristine can feel like walking on eggshells. One missed payment or a slight bump in credit utilization could send your score plummeting, causing anxiety and sleepless nights.
- The diminishing returns: Let’s be real, the difference between an 800 and an 850 score might not be as significant as you think. Sure, you might get slightly better rates, but the overall impact on your financial life might be minimal.
- The opportunity cost: Chasing that perfect score can be time-consuming and require sacrifices. You might miss out on opportunities to invest or build wealth while focusing solely on credit optimization.
So, Is It Worth It? The Verdict
The answer, my friend, depends on your individual financial goals and priorities. An 850 is definitely worth the effort if you’re looking for the best offers and the lowest interest rates. However, if you’re okay with a little lower score and put other financial objectives first, an 800 or even 750 could be sufficient.
Ultimately, the decision is yours. Weigh the pros and cons, consider your personal financial situation, and choose the path that aligns with your long-term goals. Remember, there’s no one-size-fits-all answer when it comes to credit scores
Frequently Asked Questions: Your Credit Conundrums Answered
1 How do I get an 850 credit score?
The path to 850 is paved with responsible credit management. Here are some key tips:
- Pay your bills on time, every time. This is the golden rule of credit building. Even a single late payment can ding your score.
- Keep your credit utilization low. Aim to use less than 30% of your available credit.
- Don’t open too many new accounts. Every new credit inquiry can temporarily lower your score.
- Become a credit card master. Use your cards responsibly and pay them off in full each month.
- Become a credit card master. Use your cards responsibly and pay them off in full each month.
2, How long does it take to get an 850 credit score?
Reaching the 850 threshold usually requires several years of steady, excellent credit management; however, there is no magic bullet. Patience and perseverance are key.
3. Is it worth it to pay for credit repair services to get an 850?
Proceed with caution. While some credit repair services can be helpful, others are scams. If you decide to take this route, make sure you do your homework and select a reliable provider.
4. What if I have bad credit? Can I still get an 850?
Absolutely! It might take longer, but with consistent effort and responsible credit management, you can improve your score significantly over time.
Additional Resources: Your Credit Knowledge Power-Up
- Experian: https://www.experian.com/blogs/ask-experian/perfect-scores-who-has-them-and-what-do-they-have-in-common/
- Bankrate: https://www.bankrate.com/personal-finance/credit/trying-get-perfect-credit-score-worth-it/
- Credit Karma: https://www.creditkarma.com/advice/i/what-is-a-good-credit-score
- NerdWallet: https://www.nerdwallet.com/article/finance/what-is-a-good-credit-score
Remember, knowledge is power, especially when it comes to your credit score. So, arm yourself with information, make informed decisions, and conquer the world of credit like a boss!
Percent of Consumers With an 850 FICO® Score by State
Four of the top ten metropolitan statistical areas (MSAs) in California have populations with the highest percentage of perfect scores. That list includes very large metropolises like the Bay Area in addition to smaller, wealthier enclaves like Santa Rosa in the heart of wine country. More than 1 in 50 consumers had a perfect 850 credit score in the San Francisco-Oakland MSA. (By comparison, in Denver, a similarly large metro, 1. 49% of consumers had an 850 FICO® Score, a percentage more consistent with the national average. ).
Other standout metros include Honolulu; Corvallis, Oregon; Minneapolis and Washington, D.C.
| Top 10 MSAs With the Highest Concentration of Perfect FICO® Scores | |
|---|---|
| Percent of Consumers With an 850 FICO® Score | |
| Honolulu, HI | 2.23% |
| Corvalis, OR | 2.20% |
| Oxnard-Thousand Oaks-Ventura, CA | 2.16% |
| San Luis Obispo-Paso Robles, CA | 2.13% |
| San Francisco-Oakland-Fremont, CA | 2.11% |
| Minneapolis-St. Paul-Bloomington, MN-WI | 2.09% |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 2.08% |
| Santa Rosa-Petaluma, CA | 2.03% |
| Trenton-Ewing, NJ | 2.01% |
| Barnstable, MA | 2% |
Source: Experian; data as of Q3 2021
Hawaii Has the Highest Concentration of People With Perfect FICO® Scores by State
In 202021, exactly 2% of Hawaii’s population had a FICO%C2%AE%20Score of 850, a higher percentage of consumers than in any other state. A considerable number of retirees move to the 50th state every year, necessitating a certain amount of financial security. The demographics of migrants to that state are comparable to those of a typical consumer with excellent, or even perfect, credit.
When comparing state-by-state perfect FICO%C2%AE%20Scores, Hawaii had the highest concentration of customers with a score of.850 at.2% in 2020–21. Mainland states that followed were Minnesota, where 1. 87% of people had an 850 FICO® Score, then Connecticut and Maryland, both with 1. 78% of borrowers achieving the perfect FICO® Score. Virginia had the fifth-greatest percentage of 850 FICO® Scores, at 1. 74%.