FICO or VantageScore is the most popular credit score.
An 850 credit score is the highest you can get on the most popular scales. The scale is 300-850 for VantageScore and FICO. Lenders typically consider credit scores above 720 to be excellent.
You’re unlikely to maintain your highest credit score month after month, even if you achieve it. Because scores are snapshots of your credit profile and change over time, they can fluctuate.
Both the widely-used FICO8 scoring model and VantageScore 3.0 operate on a 300-850 scale. FICO, a credit scoring company, claims that only 1% of its scores reach the 850 mark. Jeff Richardson, the spokesperson for VantageScore, stated that less than 1% of the company’s credit scores are perfect.
Good credit habits are essential to achieving perfect credit scores. This is why it’s important to practice good credit habits for a long period of time. You might expect that older consumers have higher scores than those who are younger.
Scores can fluctuate as they reflect your credit history. You’re unlikely to maintain your highest credit score month after month, even if you do achieve it.
A high credit score is a good thing.
To get the best deals, you don’t necessarily need perfect credit. An excellent score is usually 720 or more. Scores of 800 or higher qualify you for the best terms.
This is great news for those who want to join the elite group of people with top-tier credit. However, you shouldn’t obsess about every point to achieve the highest possible score.
What do people with scores of 800 and higher do?
FICO says those with extremely high credit scores pay on time, use credit sparingly, maintain a long credit history, and are less likely to open new accounts. Here are the things they have in common.
Credit history of approximately 25 years.
Credit cards less than $3,500
Only 7% of the credit limit is used.
Credit reports are free from late payments (so payments that were made more than seven years ago).
How to get the best credit score
We have strategies to help you fight for every point possible if that is what you want.
Every bill must be paid on time. Your payment history is the most important factor that determines your score. A mistake here can really hurt you.
Your credit limit should not exceed 10%. Your credit utilization, or the extent to which you use your credit limits, is another important factor that can impact your score. The better your credit utilization, the lower it can go.
Multiple credit accounts and installment loans are possible.
If you have a poor credit history, request to be authorized on an established credit card.
To spot any errors in your credit reports that could affect your score, you can check your credit reports. You have access to credit reports from all three credit bureaus every week until April 22, 2022.
Only apply for credit if you truly need it.