Consumers have an interest in credit scores and how the system operates. Specifically, several questions about whether one can acquire a flawless credit score. The FICO score is a credit score developed by the Fair Isaac Corporation to measure an individual’s creditworthiness. FICO scores are between 300 to 850 where 850 shows credit strength with little chance of being in default on loans or other obligations. However, some of the consumers have heard of people getting FICO scores even above 850, or even touching 900 and above. Is this possible?
In short – no – much as people may have heard some horror stories, there is, in fact, no way for a consumer to reach or surpass the 900 FICO score under the current FICO system. The test has a total of 850 points available for the candidate. Not even those with a significantly good credit score can exceed 850. That is why, although chasing the best credit score possible is a noble cause, once one gets into the 850-point range, there is nowhere else to go.
Why 850 Is the Credit Score Ceiling
FICO sets the scoring parameters and formulas for the computation of credit scores. This formula is owned by the company and involves the assessment of details found in the credit reports of consumers to determine their creditworthiness. FICO deliberately places the upper limit as 850 to allow for occasional mistakes or fluctuations. This ensures that a small change in your credit does not pull your rating to the lowest score possible. There can be some fluctuations, but you are still within the range of exceptional learners.
The company believes that having a benchmark of 850 makes people try to keep a good credit score all the time. If there were 900 or higher scores, one may not be as incentivized to maintain a healthy credit profile once they reach 850. Consumers spanning all credit brackets are thought to be best served by the current scale of FICO.
The Myth of Ultra-High Credit Scores: Practical Implications
It is just as difficult to attain an 850 FICO as one might imagine. This means that all entries with the credit reporting agencies have no blemishes or are almost flawless to match your dream credit report. Most people with excellent credit scores hardly record above 800. Even something as simple as being one payment behind for years or a high balance on one credit card reduces the number on the credit score a little.
Moreover, getting a score of over 800 is almost identical to getting an 850 score in terms of functionality. Many lenders will automatically offer you the best loan terms and the lowest interest rates if your score is in that range. Thus, striving for 850 is not always better than being satisfied with a range of 800-850.
The Bottom Line
Although there are rumors about the existence of a 900+ credit score, it is essential to keep in mind that it is a myth. Originally, FICO scores were never intended to be above 850. The idea is to aim for a perfect one which is not equal to 1000 but to be as close to it as possible. An 850 FICO means that there is no blemish on the credit standing in all aspects – a herculean task, but possible for some individuals who are careful with their credit reports all the time. Depending on the rating it gets much harder to achieve significant improvements once you pass 800. ”
Instead of stressing out over whether or not it is possible to achieve a score that is above 850, your energies are better directed towards maintaining such a high score. Or if you’re not there yet, aspiring to be working towards a score of 850. Just getting to this FICO score already puts you on the bragging rights list with lenders and creditors. And it makes you eligible for any loan product including the best rate. Therefore, getting a 900+ score is just an overkill, what one needs to do is to ensure that one’s credit score remains at 850 by practicing good credit practices.
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