A credit score of 1,000 is not possible because credit scoring models simply do not go that high. According to Experian, some credit scoring models reach upwards of 900 or 950, but those are industry-specific scores that are only used by certain institutions.
VantageScore’s old scoring model soared as high as 990, but that is no longer the case today. Although a 1,000 score isn’t possible, an excellent credit score is attainable.
What’s the highest credit score you can have?
In most cases, a credit score of 850 is the maximum possible credit score. The range of scores for popular FICO and VantageScore is between 300 and 850. Ultimately, lenders typically consider anything above 720 to be an excellent credit score.
Highest FICO score
The highest FICO score that you can possibly have is 850. Depending on how the credit bureau calculates your score, these ranges will vary slightly. For example, the excellent range of credit scores for TransUnion is between 781 and 850, but for Experian, the excellent range is between 750 and 850. FICO has stated that approximately 1% of scores reach a perfect 850.
Highest VantageScore
Years ago, a perfect VantageScore was 990. The VantageScore 3.0 and 4.0 models have adopted the 300 to 850 scale, just like FICO. The highest VantageScore is 850, but less than 1% of credit scores ever reach 850.
Why your credit score matters
Your credit score will affect many aspects of your life, including your ability to obtain housing and even employment in some cases. In a number of states across the country, credit scores also impact auto insurance rates. Additionally, credit scores are used by lenders to determine your overall creditworthiness.
The benefits of having a high credit score
Since credit scores are determined by the data that makes up your credit reports, a higher score indicates that your financial health is in good standing. In addition to a favorable reputation, there are several other major benefits to having a high credit score.
Secure lower interest rates
The higher your credit score, the lower the interest rate you’ll secure on a credit card, auto loan or mortgage. According to Experian data, consumers with the best credit are eligible for an average interest rate of 4.2% on a new car. This value is much lower than the 14.97% interest rate that those with poor credit are often offered.
Obtain financing more easily
Unless you have cash on hand, you’ll likely need to finance major purchases, such as cars and houses. A high credit score opens the doors to a world of helpful financing opportunities. With bad credit, you’ll risk paying high interest rates with unfavorable terms if you’re not denied entirely instead.
Earn better approval rates for rewarding credit cards
Credit cards that offer rewards and incentives, such as airline miles or cashback, for spending are usually reserved for consumers with the highest credit scores. You can boost your odds of qualifying for one of these cards by reaching an excellent credit score.
Receive better approval rates on apartments and rentals
There is no standard credit score requirement when renting an apartment or a house, but having a high score can increase your odds of your application being approved. If you don’t have good credit, you might have to pay more upfront before you can qualify.
Negotiate lower interest rates on existing debt
Your credit card APR doesn’t matter if you pay off your credit card balance in full each month. However, if you have a balance on your card, having a high credit score may help you as you make negotiations with the lender in an effort to lower the interest rate. You could spend a lot less money if you can get a lower interest rate.
Tips for reaching the highest credit score
Although a perfect credit score is rare, it’s always wise to aim for the highest score possible. Reaching the highest credit score requires you to have financial discipline. Here are some tips for crafting a perfect score.
Curb your spending
It’s easy to rack up credit card debt, but it isn’t as easy to pay it off. So, make it a point to avoid any unnecessary spending. Try to only use your credit cards for emergencies.
Set up automatic payments
Since payment history accounts for 35% to 40% of your credit score, though the exact value depends on the scoring model being used. Either way, you’ll want to ensure you’re paying on time.
A single missed payment can have a significant impact on your score. Automatic payments eliminate the risk of forgetting that your bills are due.
Pay off your balance each month
Paying your balance in full can help you avoid interest fees while keeping you out of credit card debt. If you only pay the minimum amount of money that is due, you can easily end up in debt over your head.
Stay under 30% of your credit limit
The amount of credit you are currently using divided by the total amount borrowed is your credit utilization ratio. Aim for a low credit utilization rate if you want to have an excellent score. While 30% is the recommended max utilization percentage, FICO reports that people with credit scores of 850 typically keep their credit utilization rate below 4%.
Don’t apply for credit too often
Too many hard inquiries can lower your credit score. Although they cause minor impact, they can raise red flags for credit bureaus. MyFico.com states that individuals with six or more recent hard inquiries are eight times as likely to file bankruptcy when compared to those who do not have any recent inquiries.
In addition to inquiries impacting your score, opening too many new accounts can also lower your score due to the age of your accounts. New accounts are scored even lower than established credit accounts.
Perfect scores aren’t necessary
Perfect credit scores are incredibly rare, though they are possible. Although high credit scores make it easier for people to qualify for financing, you don’t need perfect credit to get a good interest rate on loans or credit cards. Individuals in the excellent range of 800 or greater can expect to reap the most benefits from their high credit scores.
FAQ
What’s the highest credit score possible?
The current highest credit score used by the two most popular credit scoring models of FICO and VantageScore is 850.
Why does your credit limit matter?
Your credit limit matters because it is the amount of credit that is available to you, and it is best to leave your credit cards untouched in the event of an emergency or unexpected hardship.
What’s a good credit score?
Good credit scores vary because they are based on different credit bureaus, but generally speaking, credit scores considered to be in the good range for both FICO and VantageScore are between 670 to 739.
Written by Jacinta Sherris Jacinta Sherris is a full-time writer with a B.A in Economics from New York University. Since 2017, she has contributed numerous lifestyle and finance articles to a wide range of companies and publications, including MoneyLion. In her free time, she enjoys pursuing her artistic passions and traveling.
