Does anyone have an 850 credit score?

Has Anybody Heard about the 850 Credit Score?

The peak of the FICO and VantageScore credit score is 850 and is presently used by the three credit bureaus in the United States of America, namely Experian, Equifax, as well as TransUnion. It is well known that the higher the credit score the better the credit ranking and this range of 850 is in the league of the very best. However, this top performance is very low – only 0,3 percent of the consumers can excel that much. Now perhaps it is time to turn our attention to the people who possess 850 credit scores, as well as the fact that it is almost impossible to achieve this score.

Finding out that your credit score is 850 is good news, but the question that comes to mind is: what does it mean?

An 850 credit score simply put is a super-elite score, which would be given by either the FICO or Vantage Score formulas.

Some key indicators of why someone might have a credit score this high include:

• I have agreed that there should be no late payments on all accounts ever
• Low credit utilization at the time of credit card accounts as well as in the past years
• It may be constructed as a positive credit history that has been built up over several years.
• Types of credits include; Real estate credits-auto, credit cards, personal, travel, cash advance, business, secured and unsecured.
• There was no record of any collection, charge-off, bankruptcies, or any other negative credit marks.

Therefore, a consumer with an 850 credit score has proved to be an excellent credit risk as well as a responsible borrower in all aspects of borrowing and managing money in the long run. This leads to very low risk to the lenders and the most preferred interest rates for the loans and other charges.

What’s The Chances Of Getting An 850 FICO Credit Score?

It must also be noted that the chances of having a perfect score of 850 are very limited. According to FICO, the current breakdown of U. S. consumers by credit score ranges as follows:

• 850-800 BC: 0. 4% of the population
• 799-750: 5,3% of the population
• 600-549: 15. 8% of population
• 699-650: population density is 21. 3%.
• 649-600: 24,9%
• 600-300: 27. 5% of population
• (299-250) 4. 8% of population

As you can observe from the above, merely one-half of 1 percent of the consumers have attained a credit score of between 800 to 850, which is an impeccable score. Contrary to expectations, the largest percentage of individuals fall under the credit score of 650-699 which is the least.

Why It’s Not Easy to Get 850 Credit Score?

Obtaining a perfect credit score is very challenging for several reasons:

1. No Late Payment Ever – You are not allowed to have ever had a single payment on any account that you have been issued with as a credit card holder. It could be one 30 or 60-day late mark to pull down the score even when all other aspects seem to be good.
2. Low Credit Card Balances – Having little balance on one’s credit cards and ensuring that credit utilization rates are less than 30 percent is important. Any balance – let alone even the occasional higher ones – can jeopardize the idea of achieving that perfect 850 score.
3. Low Bad Record – You have to prove that you have many good borrowing habits stretching for a long time. It will only take a few months to get a credit score of 850, hence a short credit history of two years cannot allow one to reach 850.
4. Credit Histories – Credit cards are important but other accounts such as auto loans, mortgages, and student loans as appropriate should also be included. The presence of both active and inactive accounts is a sign that one can handle different credit products appropriately.
5. Applying for Credit: Minimally – Each time a person applies for credit or a credit check is run on the potential borrower, there will be a small, but negative, effect on the credit score. Those with scores of 850 avoid applying for new credit lines frequently.

As you have seen, the requirements are pretty straightforward; they require perfect credit management for many years without a single mistake – a scenario that is, at best, very hard for the majority of people to pull off in real life. However, there are some credit card holders with uber-meticulous money personalities out there who achieve the perfect 850 scores.

Who Has a Better Chance of Achieving an 850 Credit Score?

Based on the very strict criteria required to qualify for a top-flight 850 credit score, the people most likely to hit this marker include:

• Longest history – consumers with a credit history that has been active for 30 years and above have all the time in the world to register their best long-term credit records. Short credit reports almost always contain scores that do not go over 800.
• High earner – The people who earn high salaries are in a better position to always pay bills on time and maintain low available credit limits.
• Credit wise – Consumers who can never delay their payments or make any other mistakes for years as they are financially disciplined and knowledgeable are favored.
• Credit marks avoided – Those who save to purchase items such as cars and houses by paying cash, do not get exposed to credit marks.

In other words, the Americans with the best chances of becoming members of the much-coveted class of perfect credit score holders are the elderly who have exhibited good habits in personal finance for many years, never fallen for consumer credit vices, and those who have used credit wisely.

The Takeaway

While 850 FICO or VantageScore credit score is feasible, analyzing the data, it can be seen that fewer than 1 percent of consumers attain it. You have to avoid getting bills in the first place or ensuring that they are paid on time, keep your account balances low, have a long positive credit history, and use credit sparingly over many years. However, maintaining a steady and prudent approach to credit in the long run, even if you will not be getting yourself to 850, is very beneficial for your credit score and overall financial situation.

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