Is It Possible To Have 850 Credit Score?

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Well, in short, YES, it is possible to have an 850 credit score.

Believe it or not, the 850 credit score is a perfect score. According to WalletHub data, only 1% of people have such an exclusive score.

Before proceeding further, let’s learn the basics of credit score and how it works so that it will be easier for you to understand how to get a better score, and more importantly how to hold that score for a longer period of time.

Pie chart showing the ratio of people with and less than 850 credit scores.

What is a credit score?

A credit score is a number used by lenders to judge how capable you are, or will be, to be able to pay back your debts.

For instance, if you have a credit score of 300, it is considered a bad score. Very few lenders will lend you any money, and only if you got lucky, with that less of a score.

And on the other hand, if you are able to have a score of 900, which is absolutely rare, you could walk into a bank and ask for a $500K mortgage and you should have no problem in getting it.

So now the question is how they calculate your score and what is the “maximum” score you can have?

Hardly some people fully know how these credit scores are calculated, as it is a guarded secret. 😊

But here is a good set of points to help you understand what goes into calculating your credit score and how to improve if you have a less score:

  • The more you pay off your debts on time (credit cards, line of credit), the better your score will be.
  • Paying off a big chunk of your debts every month, on time, is considered good.
  • However, paying just the minimum will be a little less scoring for you.
  • It is better to have just a few big debts like a mortgage and a line of credit rather than having lots of small debts like 3-4 credit cards.
  • The more is outstanding debt, the worse it is becoming. So make sure to pay your debt on time, everytime.
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We have learned the basics of credit score, now let’s talk about the highest credit possible.

What is the highest credit score possible?

As we know, a credit score is a 3-digit number that signifies your creditworthiness, so it can range between 300 to 900.

900 is the highest credit score possible ever, but the funny fact is that no one has ever gotten that kind of score, or if anyone did, there is a very slight chance that they would be able to maintain it.

Interestingly, FICO says that the best-known range of credit score is 300-850 and 850 is considered as the maximum credit score, but now you must be thinking that earlier I said that 900 is the maximum score possible.

Here’s the thing, it is possible to have a score of 900 but depends on what kind of industry you are in. Like scores for credit cards or auto loans can range between 250-900 but for normal people, it ranges from 300 to 900.

Here are FICO’s basic credit score ranges:

  • Exceptional Credit Score: 800 to 850
  • Very Good Credit Score: 740 to 799
  • Good Credit Score: 670 to 739
  • Fair Credit Score: 580 to 669
  • Poor Credit Score: Under 580

So after learning about these scores, we can conclude that 850 is the maximum possible credit score.

Now let’s talk about how to get that kind of score, how to get it fast, and how to maintain it.

Now if you have decided to have the maximum credit score which is 850, you must know that only 1% of people have a FICO score of 850 (According to WalletHub).

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Well, if we talk about theory, it is possible to have an 850 credit score but practically it is a hard shell to crack.

In fact, almost 1% of consumers have ever seen such a score and if they got lucky enough to get so they won’t be able to maintain that score for too long, as FICO scores are constantly re-calculated by credit authorities.

The worst part is that you can’t even know what is affecting your credit score. Hardly anybody knows how these calculations work.

According to FICO,

  • 35% of our score derives from the payment history,
  • 30% from the amount we owe (credit utilization),
  • 15% for credit history length and a mix of accounts, and
  • New credit inquiries are factored in at 10% each.
Credit Score Calculation "investingoals"
Pie chart showing credit score distribution

So, from all this, we can only conclude that there is no such method that you will follow, and you will reach the 850 credit score. The only thing you can do is:

  • Don’t miss your payments, EVER!
  • Catch up on past-due accounts.
  • Pay down revolving account balances.
  • Limit how often you apply for new accounts.

By doing these, you might improve your credit score faster.

You have worked so hard to get the maximum credit score. Now, let’s see what are the benefits of having such a score.

What are the benefits of having a credit score of 850?

Many experts say that 800 is considered an exceptional credit score. With a great credit score (usually anything above 760), you get a loan for whatever reason you want.

Let us say when you apply for a car loan, student loan, home loan, or credit card, your credit score is reviewed to determine how much they can lend you and what your interest rate will be.

The riskier you seem, the lower the limit they’ll give you, and the higher the interest rate they’ll charge. Now, suppose your credit score is 620, so you get a mortgage loan approved at a 5 percent interest rate.

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This equates to a monthly mortgage principal and interest payment of about $2,685 per month. Over the period of 30 years, your total principal and interest value equals $966,600.

So on your $500,000 mortgage loan, you will pay approximately $466,600 in interest over 30 years.

Now let’s say your credit score is 760, so you get a mortgage loan approved at a 3.5 percent interest rate. This equates to a monthly mortgage principal and interest payment of about $2,245 per month.

Over the course of 30 years, your total principal and interest payments will equal $808,200. So on your $500,000 mortgage loan, you will pay approximately $308,200 in interest over 30 years.

Just by having a better credit score, you could potentially save $158,400 in interest over the course of 30 years.

The benefits of 800 and 800+ credit scores are as follow:

  • You’ll get low-interest rates on credit cards and on loans with higher credit limits
  • Your chances of getting approval for a credit card and loan increase up to 95%
  • You’ll have the negotiation power
  • You’ll get the higher limits of credit
  • Easy approval for apartments
  • Better car insurance rates
  • No security deposits on utilities

So, the final question:

Is it good or bad to have a credit score of

Before answering this question, I would like to ask YOU a question that have you read everything that we have mentioned above?

If yes, then I think I have already answered this question that there are a lot of benefits of having a score of 800+, and you will get superhuman powers with scores like 850, which is the maximum possible credit score till now.

I hope that you have understood what you came here for, still if there is anything that you want us to tell you do let us know in the comments.

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