Your credit score ranges from 300 to 850. There are technically many types of credit scores, and not all of them use this scale, but the most popular ones do. That includes the FICO® Score system, which is what's most widely used by lenders.
Since higher scores are better, an 850 is a perfect score. It's also notoriously difficult to reach. While improving your credit score isn't too difficult, getting the highest possible score is. It takes many years and quite a bit of work managing your credit.
So, just how rare is it to have a perfect credit score? A credit score study by The Motley Fool Ascent has the answer. After we look at that, we'll also cover why perfection isn't necessary when it comes to your credit score.
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How many Americans have an 850 credit score?
Only 1.31% of Americans with a FICO® Score have a perfect 850 credit score. While a score this high is rare among any demographic, older generations are more likely to have perfect credit. Baby boomers make up a whopping 59.4% of the people with an 850 credit score. Millennials, on the other hand, make up just 4.1%, and Generation Z a mere 0.1%.
In terms of actual numbers, there were 258 million credit-eligible people as of the 2020 U.S. Census. However, some adults don't have enough data on their credit history for FICO to be able to calculate a score for them. They're considered "credit invisible."
FICO data scientists have estimated that 232 million U.S. consumers could be scored under the FICO® Score system. Based on that number, about 3.04 million Americans would have an 850 credit score.
Nobody needs perfect credit
The financial benefits of perfect credit are the same as having very good credit. The only special thing about perfect credit is bragging rights -- but showing off an 850 probably isn't going to make you the life of the party.
In terms of how high your credit score needs to be, a FICO® Score of at least 760 is fine. At that point, your score is high enough to pass any credit check, qualify for any financial product, and get the lowest rates on loans. You'll likely be able to qualify for all these:
- Best credit cards
- Low-interest mortgages
- Low-interest personal loans
To be clear, no credit score guarantees you'll be approved for whatever you want. You can still get denied for a credit card or mortgage with a 760 credit score, or an 850. Lenders look at much more than just your credit score. But once you have a FICO® Score of 760, your credit won't hold you back from anything.
To sum it up, an 850 credit score is a lot of work for no real reward. A high credit score is beneficial, but an 850 isn't necessary.
How to improve your credit score
If it's not where you want it to be yet, here are a few tips that will help you raise your credit score:
- Have at least one credit card you use regularly. To build credit, you need to borrow money and pay it back. A credit card is one of the best ways to do this. If you pay your full balance every month, you don't get charged credit card interest.
- Always pay your bills by the due date. Your payment history is the most significant factor in your credit score. A late payment (meaning one that's past due by 30 days or more) on a credit card or loan can severely damage your credit.
- Keep your balance below 30% of your credit limit. For example, if your card has a limit of $10,000, aim to always have the balance below $3,000. Another important part of your credit score is your credit utilization ratio, and using too much of your credit can cause issues.
- Be selective when applying for new credit cards and loans. Opening new accounts and applying for new credit cards can lower your credit score. When you're trying to improve your credit, it's best to keep these to a minimum.
Some people think building credit is complicated, but it's really not. If you follow those habits, you can make fast progress with your credit score.
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FAQs
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. That's up from 1.31% two years earlier.
How common is a 900 credit score? ›
It's exceedingly rare for anyone to have a credit score over 900, as most credit scoring models have a maximum limit of 850, and even achieving that score is uncommon.
Can you have a perfect 850 credit score? ›
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.
How rare is an 830 credit score? ›
Your score falls in the range of scores, from 800 to 850, that is considered Exceptional. Your FICO® Score and is well above the average credit score. Consumers with scores in this range may expect easy approvals when applying for new credit. 21% of all consumers have FICO® Scores in the Exceptional range.
What percentage of people in the US have an 800 credit score? ›
71.3% of Americans have a FICO Score of 670 (good) or better. 21.2% have an exceptional FICO credit score of 800 or above. FICO credit scores generally increase with age, with older generations having higher averages.
What is the average credit score in America? ›
Credit scores help lenders decide whether to grant you credit. The average credit score in the United States is 705, based on VantageScore® data from March 2024. It's a myth that you only have one credit score.
How rare is an excellent credit score? ›
How many Americans have an 850 credit score? Only 1.31% of Americans with a FICO® Score have a perfect 850 credit score. While a score this high is rare among any demographic, older generations are more likely to have perfect credit. Baby boomers make up a whopping 59.4% of the people with an 850 credit score.
How rare is 825 credit score? ›
Membership in the 800+ credit score club is quite exclusive, with fewer than 1 in 6 people boasting a score that high, according to WalletHub data.
Can I buy a house with 850 credit score? ›
Even the most restrictive mortgage products have credit score requirements in the mid-700s. A credit score of 850 will generally qualify you for a lender's best interest rates. As a real-world example, the average 30-year fixed mortgage interest rate was just over 7% as of late October 2022.
What is the highest credit score to buy a house? ›
What is a good credit score for buying a house?
- 800 or higher: Exceptional.
- 740-799: Very good.
- 670-739: Good.
- 580-669: Fair.
- 579 or lower: Poor.
The truth is there's no such thing as a “starting credit score.” Some people wonder whether the starting credit score is zero, for example, or whether we all start with a credit score of 300 (the lowest possible FICO score).
What percentage of people have a credit score over 850? ›
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. That's up from 1.31% two years earlier.
What is a good credit score for my age? ›
What is a good credit score for your age? You might consider your score to be good if it meets or exceeds the average for your peers, but that isn't the best gauge. Following NerdWallet's general guidelines, a good credit score is within the 690 to 719 range on the standard 300-850 scale, regardless of age.
Does anyone have a 900 credit score? ›
A credit score of 900 is not possible, but older scoring models that are no longer used once went up to 900 or higher. The highest possible credit score you can get now is 850.
What is the difference between 800 and 850 credit score? ›
If you have an 850 credit score, your credit is perfect — but any credit score over 800 is considered exceptional, and that's just as good.
What happens when you reach an 850 credit score? ›
Your 850 FICO® Score is nearly perfect and will be seen as a sign of near-flawless credit management. Your likelihood of defaulting on your bills will be considered extremely low, and you can expect lenders to offer you their best deals, including the lowest-available interest rates.
Is a 1000 credit score possible? ›
A credit score of 1,000 is not possible because the standard credit score range used by FICO and VantageScore is 300 to 850. Other credit scoring models have a high of 900 or 950, but they are industry-specific and only used by certain financial institutions.
Why is my credit score between 300 and 900? ›
Of these, TransUnion CIBIL is the most well-recognised credit information bureau and is preferred by lenders. TransUnion assigns a CIBIL score ranging between 300 to 900 to an individual based on their creditworthiness and repayment capacity. Note: The CIBIL Score Range is defined as per the industry standards.
Is it possible to have an 800 credit score? ›
An 800 credit score shows lenders you are an exceptional borrower. You may qualify for better mortgage and auto loan terms with a high credit score. You may also qualify for credit cards with better rewards and perks, such as access to airport lounges and free hotel breakfasts.
When did the 900 credit score go away? ›
At first, the VantageScore used a very different scoring range, 501–900, but in 2013 it changed its range to be the same as FICO: 300–850.
