Once you start accruing your credit rating and applying for loans with lenders who are very interested in what score you have, you may wish that you had a perfect credit score. It would certainly make interest rates a lot lower. So, what is the highest credit score and how do you get it?
FICO scores run from 300 (very poor) to 850 (excellent). Anything 700 and up is considered to be pretty good, and anyone with a 785 or higher is considered to be a high achiever. But the fact of the matter is that almost no one has a perfect 850 score. When borrowing any sort of money, there is always some chance, however small, that you might not pay that money back, and this affects your score. People exist in the country who have scores of 848, 849, and yes, even 850. But these scores are so rare that they are practically nonexistent. Many credit pros have never even seen scores in the high 840s range.
Stats from the High Achievers
To achieve the highest FICO score, or close to it, there’s no better way to learn the tricks than by looking at credit trends from the high achievers (those with scores 785 or higher) in the nation.
- They have, in total, 7 credit card accounts, both open and closed.
- They rarely open new accounts.
- 96 percent never missed a payment.
- They have balances on 4 cards or loans on average.
- They use only about 7 percent of the credit available on their cards.
These stats indicate that the key habits to achieving a high score include paying every bill on time, keeping credit balances low, opening few accounts, and opening accounts rarely.
One specific success story comes from a man in Ohio who received a statement in 2012 that informed him of his 848 score. Incredibly, he never worried very much about his credit score. In fact, he almost never checked it. His simple financial philosophy is to pay every bill on time and only spend money when you know you can repay it.
Is a Perfect Credit Score Even Worth It?
Like I said above, getting a perfect FICO score is extremely difficult. It’s also simply not necessary. The biggest reason why having a good credit score is important is interest rate; with a better score, you get better interest. However, a score of 800 probably isn’t going to get you a lower rate than a 750 and neither will a perfect score. Lenders aren’t looking for perfect because they would never find it. Instead, they are just evaluating whether or not you manage finances well. Another reason why striving for an 850 is pointless is because scores fluctuate so much. Even if you somehow had a perfect score, that could easily change by dinnertime.
In other words, it’s better to manage your finances to the best of your abilities than stress over achieving the highest FICO possible to get better rates. At Low VA Rates, we do business with veterans that have all FICO scores. Give us a call now to see what rates you qualify for.