Is it possible to achieve a perfect creditworthiness of 850?

In recent years, the average creditworthiness for US -grown -ups has been 715. If you are a perfectionist, a 715 -points may not seem high enough, since the most popular rating models are up to a maximum of 850.

But is it even possible to achieve a score of 850? According to Fico, it is. However, it is incredibly rare; Less than 2% of the population have perfect loan scores. Even for me-a former NFCC-certified credit consultant and a loan expert-WAR so far out of reach. This year my FICO 8 value reached a high of 842.

After this is said, I am not in a hurry to reach an 850, and you shouldn't be. Why? Apart from the ego boost, there is no use to score perfect points. As soon as you are in the high 700s, your creditworthiness already qualifies for the best credit cards and loans on the market.

The most widespread credit assessment model is FICO, which is between 300 and 850. A perfect 850 loan score can be reached, but most of the population will never have that high. According to the latest available data, only around 1.7% of the US -growing FICO values ​​of 850 have.

The group, which is most likely to achieve a perfection of the score, are older adults because they have the advantage of longer credit history and more financial stability, both of whom help to build high points.

Does this mean that you have to wait for retirement to build out excellent credit? Under no circumstances!

In 2016, Fico emphasized a case of a 43-year-old who was the youngest person at that time who had an “extraordinary” creditworthiness (800 or higher). I suspect that many 30-year-olds have joined since then, considering that the average creditworthiness for US-Ermen has increased by almost 20 points since then.

I am currently 42 years old and my results have been in the 800s for about 10 years. Of course, I had the advantage of working as a credit consultant in early 30s, a job in which credit reports checked every day and workshops on loan scores were taught.

Here, too, there is really no payment for the achievement of a perfect 850 loan scores. However, if you insist on striving for perfection, there are some important ways to improve your chances.

According to Fico, “high performance” or people with credit values ​​of 795 and higher – these properties have in common:

• No missed debt payments for your credit reports

• Credit card credit remain below 5% of your credit limits

• The oldest average debt account is 30 years old

I also recorded a few tricks for the acceleration of the loan score growth in my years of studying credit reports and reviews. Depending on your situation, you may be able to replicate some or all of you:

1. Became an authorized user: To start my loan profile, I asked a family member to add to their oldest credit card as an authorized user. In this way, my results benefited from their positive history with the credit card.

2. Have my own card: After winning about 80 points a year, I applied for my own credit card (I now have a total of two).

3. Annual limit increases: I make sure that I request limit increases on my credit cards at least once a year. I do this directly through the apps of my creditors to avoid a tough request that would reduce my results. If my limit values ​​are increased, this helps to reduce my loan usage rate and usually increase my scores by a few points.

4. Make two weekly payment: Last year I switched off my credit card credit once a month from the payment of two weeks, which keeps my credit relief low. This change helped me to win about eight points.

A creditworthiness of 850 benefits you in no way. You do not need 850 to qualify for the best loan interest and conditions, you still need it to qualify for reward credit cards that are difficult to make.

For practical purposes, everything more than 800 can be considered perfectly, but Fico even considered the results of 670 as good credit scores.

So if you are concerned to improve your scores, try not to concentrate so much on a number that feels symbolically important, like the “perfect” 850. Instead, exactly what you have to do with your loan in the next few years or two, and check whether improvements in your scores or other areas of your finances would be an advantage.

Suppose you want to qualify for a mortgage. You can qualify for a FHA credit (Federal Housing Administration) with credit scores of only 500 as long as you save at least 10% for your deposit. For conventional loans, most lender approves you for your lowest interest rates with scores of 760 or higher, and you do not have to pay private mortgage insurance (PMI) if your deposit is at least 20%.

It is possible to have a creditworthiness over 850, since some credit rating models such as FICO Auto Score and Fico Bankcard Score use a range of up to 900. However, these points are not often used by lenders, and there is no practical advantage of scores over 850.

A creditworthiness of 780 is considered very good when the evaluation area increases up to 850. The number of points of 780 or higher can help you qualify for the best available offers for credit cards and loans.

About 20% of people have credit values ​​from 800 to 850.