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.
A credit score of 850 is the highest you can achieve on the FICO credit scoring model, which ranges from 300 to 850 But what does having a perfect 850 score really get you, and is it worth obsessing over?
As someone who has spent years building my credit and studying personal finance, I want to share what an 850 credit score signifies and the key benefits it unlocks
What a Perfect 850 Credit Score Means
A credit score is a three-digit number calculated based on your credit history and payment patterns. It gives lenders a quick snapshot of your creditworthiness.
The higher your score, the lower risk you look to lenders. A perfect 850 signals that you have exceptional credit management skills and are extremely unlikely to default on a loan.
Specifically, an 850 score means:
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You have a long credit history with several types of accounts, including credit cards, auto loans, and mortgages. Generally, the longer your history, the better.
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You always pay your bills on time. Payment history is the most important factor in your score. Even one late payment can seriously hurt your score.
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Your credit utilization rate—the percentage of your total credit limit you’re using—is very low. Experts recommend keeping this below 10%.
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You have no negative marks like collections, charge-offs, bankruptcies, or foreclosures on your credit reports. These can stay on your record for up to 7-10 years and severely damage your score.
While 850 is perfect, a score above 800 is still considered “exceptional” credit. But hitting 850 shows lenders you are an ultra-responsible borrower.
The Benefits of a Perfect Credit Score
An 850 credit score unlocks top-tier offers on loans and credit cards. Here are some of the key advantages:
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Lowest interest rates: With pristine credit, you’ll qualify for the lowest interest rates on mortgages, auto loans, personal loans, and credit cards. This saves you thousands in interest over the life of a loan.
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Higher credit limits: Issuers reward high scores with higher credit limits, giving you more purchasing power while keeping your utilization low.
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Exclusive card offers: An 850 score makes you eligible for exclusive black card offers from issuers like American Express that have luxury perks and benefits.
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Better approval odds: Perfect credit minimizes the risk of rejection when you apply for financing or new credit cards.
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Greater negotiating power: You can negotiate for better terms and perks with lenders since they want your business. This includes lower rates, higher limits, and waived annual fees.
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Easier approvals: Renting an apartment or applying for insurance is easier with top-tier credit, which shows you’re financially dependable.
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Higher limits on loans/credit lines: With a lower perceived risk, lenders will extend higher loan amounts and credit limits.
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Better terms on deposits: You may pay lower security deposits for utilities, cell phone service, and rentals.
Is an 850 Credit Score Necessary?
While hitting the credit score jackpot of 850 is an impressive feat, the reality is you don’t need a perfect score to get approved for the best loans and credit cards.
A score above 740 is considered “very good” credit, while 800+ is deemed “exceptional” credit by FICO. Even if your score is in the mid-700s, you’ll likely receive prime rates from lenders.
The small bump from 850 to 800 just isn’t significant enough to worry about. More important is maintaining the highest score within your reach and practicing good credit habits.
How to Maintain a Top-Tier Credit Score
No matter where you fall on the credit spectrum, here are some tips to maintain the best possible score:
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Pay all bills on time. Set up autopay or reminders to avoid missed payments.
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Keep credit card balances low. Ideally 30% or less of your limit. Pay in full each month if possible.
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Limit hard inquiries. Too many applications for new credit can ding your score temporarily.
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Don’t close old accounts. Having a long credit history with aged accounts helps your score.
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Review credit reports. Verify all information and dispute errors immediately.
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Mix up credit types. Have a blend of installment loans and revolving accounts.
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Wait between applications. Space out new credit card applications by 6-12 months.
The journey to perfect credit takes diligence, patience, and responsible money management. But the financial benefits of maintaining the highest score possible are well worth the effort.
Is Chasing an 850 Score Worth It?
Getting an 850 credit score is a rewarding accomplishment and can provide a sense of financial achievement. But it requires ultra-disciplined credit management.
The effort to climb from 800 to 850 is only worthwhile if you enjoy the personal challenge. From a practical standpoint, a score over 760 already gives you access to prime borrowing rates.
Building good credit is more important than being obsessed with a perfect score. Focus first on developing consistently healthy credit habits, like:
- Paying bills on time every month
- Keeping account balances as low as possible
- Monitoring credit reports for errors
- Not applying for too much new credit at once
By sticking to these credit best practices, your score will gradually improve over time. An 850 isn’t essential to qualify for the best loans or live financially well.
Closing Thoughts
A credit score of 850 is the Holy Grail for borrowers and demonstrates exceptional financial discipline. While not required, hitting this credit high score can unlock top-tier lending offers and perks.
Yet an 850 credit score isn’t critical to your financial life. Scores above 760 are considered excellent and still qualify you for the lowest rates.
Rather than fixating on perfection, maintain the highest credit score within your reach. Focus on responsible habits like low balances, on-time payments, and frequent credit report checks.
With prudent money management, your credit score will continue to increase to its peak potential. But don’t become discouraged without a perfect 850 score. You can still access great credit products and live financially well at any tier.
More Perfect Credit Scores in Midsize Metros
In 50 of the 374 metropolitan areas in the U.S., more than 2% of consumers have perfect scoresâsignificantly higher than the 1.54% national average. There are three types of metros found in the top 10:
- Midsize metros in close proximity to larger metros; for instance, Boulder, Colorado, adjoins larger Denver, while Corvallis, Oregon, is down the road from larger Portland.
- Large metrosâsuch as Washington, D.C., and the Greater San Francisco Bay Areaâwhere much of the regional economy are seats of well-compensated sectors such as information technology and defense.
- Metros in states that have a higher concentration of perfect scores, such as Minneapolis, Minnesota, and Madison, Wisconsin.
- California metros have nabbed the top five spots of metros with the highest percentage of consumers with perfect credit scores. Close to 1 in 40 consumers in California have an 850 FICO® Score.
Rounding out the other top 10 metros are Corvallis, Oregon; Boulder, Colorado; Minneapolis; Honolulu; and Ocean City, New Jersey.
| Metro Areas With Highest Concentration of Perfect Credit Scores | |
|---|---|
| San Jose-Sunnyvale-Santa Clara, California | 2.51% |
| San Francisco-Oakland-Fremont, California | 2.48% |
| Santa Rosa-Petaluma, California | 2.47% |
| Oxnard-Thousand Oaks-Ventura, California | 2.43% |
| San Luis Obispo-Paso Robles, California | 2.42% |
| Corvallis, Oregon | 2.38% |
| Boulder, Colorado | 2.35% |
| Minneapolis-St. Paul-Bloomington, Minnesota | 2.32% |
| Honolulu, Hawaii | 2.31% |
| Ocean City, New Jersey | 2.31% |
Source: Experian data as of September 2023
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 I buy a house with an 850 credit score?
Yes, a credit score of 850, which is considered excellent, significantly increases your chances of securing a mortgage and potentially qualifying for the best interest rates and loan terms.
Has anyone gotten an 850 credit score?
Despite achieving an 850 score, Michell found that it had little impact on his financial life, as interest rates and insurance costs remained unchanged.Jan 4, 2025
Is a 900 credit score possible?
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