What Is The Highest Credit Score Possible?

While your exact credit score will vary depending on the scoring model, the highest credit score possible on any scale is 850. FICO^® (Fair Isaac Corporation) and VantageScore^® are the two primary credit-scoring models. If using a FICO^® model, any score above 740 is considered “very good” and will get you the best interest rates on mortgages, credit cards and car loans. Using the Vantage model, anything above 660 is considered “good,” though both models go up to 850.

There isn’t one specific factor that will give you an excellent credit score. Instead, your credit history will lead to a score that falls within one of five different credit ranges: poor, fair, good, very good and excellent.

These ranges vary slightly depending on the credit bureau calculating your score.

7 Facts To Know About The Highest Credit Score Possible

Here are some key takeaways to watch for in this article.

1. The max credit score possible from both FICO^® and VantageScore^® credit models is 850.
2. Having a high credit score can earn you many benefits, including lower interest rates on loans, waived security deposits and better insurance rates.
3. You don't need a perfect score to get the perks – ranking in the highest credit score range is often enough.
4. Your payment history is the most-important factor of your credit score.
5. Having a diverse credit history that includes a mix of revolving liabilities and loan products can improve your credit score.
6. Only 1.6% of the U.S. population has an 850 credit score.
7. People with perfect credit scores average a total credit card balance of approximately $2,600, less than half the total national average credit card balance.

Why Strive For The Highest Credit Score Possible?

While it’s certainly not necessary to have an 850 score, you’ll want to strive for the highest credit score possible. This will make it easier (and less expensive) for you to buy a home, purchase a car and even get a job.

Your credit score is a reflection of your credit history of repaying debts and making monthly payments, among other factors. If you have an excellent or even a perfect credit score, the lender presumes you’re a less risky investment because they assume that you’ll pay back any credit responsibly.

If your credit history shows that you don’t pay your bills on time, some lenders may be hesitant to extend you a line of credit. This will also make them more likely to increase your interest rate or otherwise offer less favorable terms, making it more expensive for you to borrow using a credit card or loan. 

Benefits Of Having The Max Credit Score Possible

There are other benefits to having the highest credit score possible beyond the ability to take out a loan or credit card. Here are some other benefits of achieving and maintaining a higher credit score.

• Lower interest rates: With a higher credit score, you’ll have a better chance of securing the best interest rates on a loan, saving you money in the long run. This could apply to a personal loan, student loan or your mortgage.
• Better car insurance rates: Your insurance provider considers how responsibly you handle your personal finances. They may make some assumptions about other areas of your life, too, such as your driving record. This is known as the “halo effect,” where your financial behavior can help you look less risky in all other areas.
• Waived security deposits: If you’re opening new accounts with a utility or a cell phone provider, they may ask for a security deposit to protect them in case you don’t pay your bills on time – or don’t pay at all. A strong credit score can help you skip the security deposit, keeping those dollars in your wallet.
• Credit card rewards: Want the best credit cards with the lowest interest rates or more perks? The better your credit score, the more options you’ll have, such as a credit card that can earn you cash back, airline miles and other benefits.
• Bargaining power: With a better credit score, you’re also more likely to get favorable treatment should something go awry. For example, if you need to skip a card payment or if you’ve sent a payment late by mistake, your card issuer may waive any late fees. Lenders might also be more inclined to raise your limit if you have a big-ticket purchase coming up or want a little more wiggle room on your monthly bills. Just keep in mind that your lender doesn’t legally need to give you some leeway.
• Other areas of your life: Some potential employers and landlords may run a credit check before hiring you for a particular position or approving you for a rental lease. In both cases, a strong credit score can demonstrate a history of financial responsibility.

What Factors Determine A Strong Credit Score?

There are several factors that influence your credit score, but the following three items are key aspects you should keep in mind.

Payment History

Your payment history accounts for 35% – 40% of your credit score depending on the scoring model. This means that making payments on time is more important than any other factor in determining your credit score. Making payments on time can also help lower your credit utilization, another major factor in determining your credit score and credit history.

Credit Utilization

Credit utilization accounts for 30% of your FICO^® Score, or 20% of your VantageScore^®. Your credit utilization ratio is a measure of the credit you’re currently using divided by the total amount borrowed.

For instance, if you have $1,000 in available credit and have spent $500, then your credit utilization rate is 50%. Ideally, you should keep your credit utilization rate below 30%.

If you want an excellent score, you should aim to have a much lower credit utilization rate. According to FICO^®, those with an 850 score tend to keep their credit utilization rate as low as 4%.

Accumulated Debt

It’s a good idea to have a diverse credit history. Your credit history includes what’s known as a credit mix, and it accounts for 10% of your total credit score.

Having a healthy mix of revolving liabilities and loan products shows that you can manage a variety of different debts at the same time. Revolving debt includes credit cards, while loan products can be your mortgage, car, or student loan payments.

How To Achieve The Highest Credit Score

If your credit score is lower than you’d like, there are steps you can take to build your credit. As you can see, achieving a high credit score isn’t arbitrary. There’s a formula you can follow to raise your credit score.

Depending on your age and credit history, it may be challenging to reach a perfect credit score of 850. It’s possible, but you’ll need a very low credit utilization rate and a robust credit history.

But achieving a credit score of 700 or higher is entirely possible. Here are several financial habits that can help you achieve this.

Practice Financial Responsibility

Being financially responsible in your personal spending is the best way to achieve an excellent credit score. For example, consider creating a realistic budget every month and eliminating some nonessential expenses. This will help make sure you can make payments on time. You can also set up payment alerts in the Rocket Money^SM app.

By spending responsibly, you can build a strong financial foundation. This foundation will equip you to make better decisions when it comes to borrowing and repaying your debt.

Make Consistent, On-Time Payments

Your payment history accounts for 35% – 40% of your total credit score, so don’t neglect this area. Your creditors will report your payment activity to the credit bureaus every 30 days. While a single missed payment is unlikely to hurt your credit, multiple late payments can damage your score.

Other monthly payments, like your gas or water bill, won’t hurt your credit unless the company sends you to a collection agency (though it's still best to pay them on-time). You can also use a rent reporting service like Level Credit to report payments that are generally excluded from your credit history, like rent and utility payments, to the major credit bureaus. Assuming you pay your rent and similar bills on time, this can help improve your score.

It might also help to set up automatic payments online to ensure you never miss a payment.

Monitor Your Credit Reports

Because your credit score is constantly being updated, it’s important to monitor your report regularly. This can ensure that it's accurate – and allow you to report errors and have them corrected quickly. You can easily check your credit score and get your full credit report, including insights as to how you might improve your credit, using the Rocket Money app.

Don’t Needlessly Cancel Credit Cards

Since credit history is an important metric, in most cases you won’t want to close a credit card, even if you don’t use it regularly. Holding a credit card for a long time can improve your credit score. If the credit card issuer encourages you to use it occasionally, consider charging it with smaller expenses or set it up as the card where you have a small subscription automatically billed. Just don’t forget to make your payments.

How Many People Have Perfect Credit Scores?

Now that you know what a perfect credit score is and what factors go into it, you may be wondering how many people achieve this feat.

FICO^Ⓡ credit scores range from 300 – 850. According to the most recent data from FICO^Ⓡ, about 1.7% of the U.S. population has a credit score of 850. This figure is up from 1.5% in April 2018 and 0.8% in April 2013.

When you look at the lifestyle and financial habits of those who have an 850 credit score, you’ll notice many commonalities.

This starts with where consumers live, as you’ll see in the chart below. The following five states contain the highest number of individuals with an 850 credit score as of April 2023 as reported by FICO^®.

Financial Practices Of People With The Maximum Credit Score

Of course, achieving the max credit score isn’t a matter of living in the right place – it takes financial discipline. Here are the financial practices of those who have an 850 credit score.

• They don’t have a history of missed payments, collections or derogatory marks on their credit report.
• Their average total credit card balance is $2,558 compared to the national average of $5,221.
• They carry more credit products (tradelines), but owe less than the national average.
• They have a very established credit history.

The Bottom Line: Striving For The Max Credit Score Can Help You Get Financial Perks

All credit scores fall in the 300 – 850 range, with 850 being the highest credit score possible. That said, it’s not necessary to have a perfect credit score, though you should strive to achieve the highest possible credit score you can. An excellent credit score – even if it's not 850 – can help you get waived fees, the best interest rates, bargaining power and many other personal finance benefits.

Checking your credit score can provide you with information to help you improve your score. Download the Rocket Money app today so you can check your score regularly without hurting your credit.