Highest Credit Score: Is It Possible to Get It?

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Highest Credit Score: Is It Possible to Get It?

You may have recently been able to check your credit score using a variety of free services, including those provided by your bank or mortgage lender. But having your FICO score is useless if you don’t comprehend what the number implies on the whole reporting scale. Perhaps you have a FICO score of 740. If you have a credit score of 750 or above, you are a credit genius. If your maximum is above 1,000, you have a C average, which isn’t all that amazing.

So, what is the best credit score you can get, and how can you get it?

Key Takeaways

  • Your FICO score is calculated using information from your credit reports from the three major credit reporting agencies. 1
  • When considering granting you a loan or line of credit, around 90% of financial institutions will use your credit score. 2
  • FICO scores vary from 300 to 850; anything less than 580 is considered bad credit, and anything greater than 740 is considered very outstanding or exceptional credit. 2
  • To get perfect or near-perfect credit, a consumer must pay all payments on time, have a variety of loans (such as auto, mortgage, and credit cards), have paid off the majority of these loans (except a mortgage), and utilize no more than 4.1% of available credit. 3

How Does It Work?

Although there are other credit scores, your primary FICO (Fair IsaacCorp.) score is the gold standard that financial organizations use when evaluating whether to lend money or give a credit card to customers. Your FICO score is not a single number. You have one from each of the three major credit bureaus: Experian, TransUnion, and Equifax. Each FICO score is solely based on the credit bureau’s data. 2

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FICO may submit any of its 50 distinct scoring models to lenders, but your primary score is the middle score from the three credit bureaus, which may have somewhat different data. 4 You have a FICO score of 750 if you have scores of 720, 750, and 770. (You should also carefully examine your credit reports since those three figures are widely disparate.)

A perfect score of 850 will earn you bragging rights, but any score of 800 or above is deemed remarkable and will get you access to the best credit card, auto loan, and other loan rates.

What’s the Range?

The most well-known FICOscore range is 300 to 850. Anything over 670 is typically seen as excellent. FICO also provides industry-specific FICO scores, such as those for credit cards or auto loans, ranging from 250 to 900. 4 FICO versions vary; the most recent is FICO 10. 5 Mortgage lenders often use earlier FICO score versions.

Here are FICO’s basic creditscore ranges:

  • Exceptional Credit: 800 to 850
  • Very Good Credit: 740 to 799
  • Good Credit: 670 to 739
  • Fair Credit: 580 to 669
  • Poor Credit: Under 580

The better your FICO score, the lesser the risk you represent to a lender, according to FICO. 2 Still, no score predicts whether a particular person would be a “good” or “bad” consumer.

FICO does not assess a person’s credit risk. It just provides a score and may provide advice based on statistical data. A person with a FICO score of 500 is not always a high credit risk. FICO simply states that persons with lower credit scores defaulted on loans more than those with better credit scores.

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1.6%

The proportion of persons with a flawless FICO score is 850.6.

How Do I Get the Highest Credit Score?

While a perfect 850 score is theoretically feasible, statistically, it is unlikely to occur. In reality, only around 1% of all customers will ever see an 850, and even if they do, they won’t see it for long since credit bureaus regularly recalculate FICO scores. 7

And there’s no way to tell for certain what’s impacting your credit score. According to FICO, your payment history accounts for 35% of your score, and the amount you owe accounts for 30%. (credit utilization).The length of credit history is worth 15%, while the number of accounts and fresh credit queries are worth 10% each. Of course, in order to calculate the score, each of these categories is further subdivided, and FICO does not explain how that works. 8

Credit bureaus that provide credit ratings may also alter their calculations—sometimes to your advantage. In 2014 and 2017, for example, changes were made to lessen the weight of medical bills, tax liens, and civil judgements. 9 Changes to FICO 10 in January 2020 regarding trending data, credit card debt, personal loans, and delinquencies, on the other hand, may make obtaining a better score more difficult. 5

There’s no need to concentrate about reaching 850, but if you want to try, here’s what you need to do: Pay all of your payments on time, get rid of almost all of your debt (except for a mortgage), and maintain your credit usage rate under 4.1%. 3 Also, avoid debt transfers, cancelling credit cards, and having too many of them. Furthermore, if you have any bad marks on your credit report that are keeping you from reaching the 850 level, one of the top credit repair businesses may be able to assist you for a price.

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The Bottom Line

Although earning a perfect or near-perfect score is lovely, it implies virtually nothing other than having a badge of pride that only around 1% of the population can accomplish. Lenders consider you a low credit risk if your score reaches and maintains at 780 or above. You’ll receive the greatest interest rates and product offerings, and you’ll almost always get a “yes” to any loan you ask for that suits your income level. 10 If you’re wondering, these are the best sources to receive your free credit score or report.

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