As of the third quarter of 2023, 1.54% of U.S. consumers had a FICO Score of 850, according to Experian data. Some notable traits of consumers with a perfect credit score include an above average number of credit cards, lower credit utilization rate and lower than average total debt.
In many sports, its possible to play a game that can be counted as “perfect.” Knock down 120 pins with 12 bowls in 10-pin bowling and youve bowled a perfect game. Retire all 27 batters and youve (usually) pitched a perfect game. And when it comes to credit, 850 is the highest the FICO® ScoresÎ scale goes.
For more and more U.S. consumers, practice is making perfect. According to recent Experian data, 1.54% of consumers have a “perfect” FICO® Score of 850. Thats up from 1.31% two years earlier.
Having a perfect 850 credit score is the dream for many consumers. But is it actually achievable, and what does it take to reach credit score perfection?
The FICO credit scoring model ranges from 300 to 850. An 850 represents a perfect credit score, while a score above 800 is considered “exceptional”. Only around 1% of Americans have pristine 850 credit.
So how is it possible to be one of the elite few with the highest credit score? Here’s what you need to know about obtaining and maintaining a perfect 850 score
What is Considered an 850 Credit Score?
- The FICO scoring model ranges from 300 to 850.
- 850 is the maximum possible score and represents exceptional credit management.
- A FICO score above 800 is considered “excellent” credit.
- Less than 2% of Americans have an 850 credit score.
- Minnesota, Hawaii and California have the most consumers with perfect credit scores.
To recap, an 850 FICO score is the highest you can achieve. It indicates a spotless credit history and elite creditworthiness.
While over 800 is excellent, scoring the maximum 850 shows lenders you are an ultra-low risk borrower who pays bills on time and keeps credit card balances extremely low.
What Does It Take to Get an 850 Credit Score?
Obtaining a perfect credit score takes diligence, patience and consistently following best practices over time. Here are the key habits of those with 850 credit scores:
- No missed payments – Ever. Perfect payment history is crucial.
- Low credit utilization – Maintain balances under 10% of limits.
- Numerous open accounts – Average of 5+ open credit cards.
- High credit limits – Shows lenders trust your borrowing ability.
- Long credit history – 15-20+ years of established accounts.
- Minimal hard inquiries – Too many looks bad to lenders.
- No negative items – Zero collections, bankruptcies, etc.
As you can see, an 850 credit score requires a flawless credit history over many years. One missed payment can drop your score significantly. It also takes restraint in not taking on too much debt or applying for too much new credit.
How an 850 Credit Score Affects Lending Offers
The benefits of a perfect credit score are:
- Auto loans under 3% APR
- Mortgages with low rates and costs
- Premium travel credit cards with big bonuses
- Approval for loans and credit cards with top terms
- Higher credit limits approved without hassle
In addition to premium offers, an 850 FICO provides leverage to negotiate favorable rates and fees. You’ll get flooded with mail offers from lenders competing for your business.
However, there is diminishing return once you reach the 800+ “exceptional” category. You’ll qualify for pretty much the same lending offers whether your score is 820 or 850.
Tips to Raise Your Credit Score to 850
While achieving perfection takes years, you can start taking steps now to maximize your score:
- Always pay all bills on time – this has the biggest impact.
- Keep credit card balances as low as possible.
- Pay off debt rather than moving it around.
- Limit new credit applications to less than 5 per year.
- Build long-term credit by keeping accounts open.
- Monitor all 3 credit reports for errors.
- Sign up for credit monitoring to track your score.
- Consider becoming an authorized user on a spouse or parent’s card.
The journey to 850 is long, but forming good credit habits now will raise your score significantly over time. Be patient and persist in practicing these tips for credit score maximization.
How Long Does It Take to Get an 850 Credit Score?
Realistically, it takes at least 10-15 years of stellar credit management to reach 850. Some factors that accelerate the timeline include:
- Starting with no negative marks on your credit reports.
- Becoming an authorized user on a credit card opened many years ago.
- Consistently having ideal credit card utilization below 10%.
- Having a credit line over $20,000 and keeping the balance near $0.
On the other hand, having short credit history, high balances, and missed payments can make an 850 credit score unattainable for many more years.
Most important is to continually practice good credit habits – in time, your score will continue to increase. But an 850 will likely take at least a decade of pristine credit behavior.
Is an 850 Credit Score Necessary?
While nice bragging rights, the reality is an 850 credit score offers minimal practical benefit over an 800 score. You’ll qualify for the same rates and offers whether your score is 820, 830 or even 850.
Rather than obsessing over a perfect score, it’s more important to work toward the best credit you can and continually practice sound credit management. Doing so will pay off with higher credit scores, better loan terms, more credit card perks, and savings on interest over time.
So while the 850 badge is a great achievement, excellent credit in the 800s will get you approved for the most competitive loan rates. Focus on steadily building your score rather than perfection. An 850 is heroic, but not required to win with credit.
Maintaining a 850 Credit Score Long-Term
Like achieving 850, maintaining it long-term requires constantly upholding stellar credit habits, including:
- Never missing or being late on a payment
- Keeping credit utilization under 10% every month
- Not closing your oldest credit cards
- Limiting hard inquiries from new credit applications
- Monitoring credit reports and disputing errors quickly
- Avoiding major financial mistakes like bankruptcy
It also helps to set up automatic payments and alerts for all bills. Be vigilant about not taking on too much debt as well. With diligence, it’s possible to keep an 850 for many years.
A perfect credit score indicates meticulous long-term dedication to credit excellence. While a score over 800 yields the same lending perks, maintaining 850 demonstrates masterful credit skills. It’s the crowning achievement of credit management.
The Bottom Line
Achieving a perfect 850 credit score is possible with 10+ years of impeccable credit habits. High income and starting with a clean slate help. An 850 FICO yields bragging rights but minimal concrete benefit over 800+.
More vital than perfection is responsibly building credit via on-time payments, low balances, and keeping accounts open. Regardless of score, practicing sound money management provides the biggest rewards.
So while 850 is the holy grail, credit excellence in the 800s will still get you the royal treatment from lenders. Focus on steady score improvement, not perfection. Great credit is about lifelong habits, not a number.
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In this update, well discuss the who, where and why of perfect FICO® Scores.
Distribution of FICO® Scores Among U.S. Consumers
Consumers with perfect scores tend to have lower debt balances than the national average for all types of revolving credit, as well as overall non-mortgage debt levels. As for auto loans, lower balances for those with an 850 FICO® Score may indicate that these consumers, when they do finance their vehicles, are able to do so with better financing terms than those with average credit scores.
| Average for All Consumers | Average for Consumers With an 850 FICO® Score | |
|---|---|---|
| FICO® Score | 715 | 850 |
| Number of credit cards | 3.9 | 5.8 |
| Credit card balance | $6,501 | $3,028 |
| Number of retail credit cards | 2.7 | 3.8 |
| Retail credit card balance | $1,188 | $194 |
| Auto loan balance | $23,792 | $19,296 |
| Mortgage balance | $244,498 | $245,710 |
| Non-mortgage loan balance | $23,964 | $17,545 |
| Credit utilization ratio | 29% | 4% |
| Total tradelines ever delinquent | 1.5 | 0 |
Source: Experian data as of Q3 2023
A few traits of perfect-credit consumers:
- Lower debt balances nearly across the board: Balances are similar among all borrowers with mortgagesâmore people with 850 scores have mortgages than those who dont, and those who do are likely able to purchase “more” house due to their superior credit history.
- Credit utilization thats near zero: On average, consumers with perfect scores tend to carry more credit cards (both retail and otherwise), but their credit utilization rate is much lower. Credit utilization is one of the most important factors in credit score calculations, and those with the highest scores tend to keep it in the low single-digit percentages.
- Delinquencies are not a concern: With an average number of delinquencies sitting at zero, perfect-score consumers are paying their bills on time.
And while its not shown in the above table, those with perfect credit scores also have lengthy credit histories. According to Experian data, baby boomers and other older consumers comprise 66% of the consumers with 850 FICO® Scores, and Generation X another 26%. Millennials and younger consumers, so far anyway, account for less than 8%.
In brief: The summit isnt out of reach. Although the average FICO® Score of 715 suggests most consumers have room to grow, many of those with even slightly above-average scores already exhibit at least some of the characteristics that go into a maxed-out FICO® Score. Score improvement might just be a matter of time.
How To Get Perfect 850 Credit Score for FREE
FAQ
Can you get anything with an 850 credit score?
You can have a 850 credit score but you will mar it as soon as you use your credit to buy something. In reality, having over 800 or so is fine, it will make no difference to your borrowing potential.
Is a 900 credit score possible?
How rare is 825 credit score?
A FICO score of 825 is considered exceptional, meaning it’s quite rare but not exceptionally so. While it’s not the highest possible score (850), it’s still within the top-tier of credit scores and indicates a strong credit history. About 22% of Americans have a FICO score between 800 and 850, according to Experian.
Is an 860 credit score possible?
A perfect score of 850 will give you bragging rights, but any score of 800 or up is considered exceptional and will usually give you access to the best rates …Sep 20, 2024