August 5, 2024

How to Get an 850 Credit Score

Earning a perfect 850 credit score might seem like it’s beyond your wildest dreams. But with the right knowledge and financial practices, you can get pretty close — and it’s always worth a try.

There are dozens of benefits to having a good credit rating. A high score grants you access to cheap and plentiful forms of credit, and it can even help you get better loan and lease options. The catch is that creditworthiness takes work.

Here’s how to get an 850 credit score and answer the question: Is it even possible to have a perfect score?

What is a “perfect” credit score?

Let’s start with the basics. A credit score is a three-digit number ranging from 300 to 850. It’s typically calculated by one of America’s three major credit reporting agencies: Equifax, TransUnion, and Experian.

Generally, 850 is the highest credit score you can get. But the ranges depend on what scoring model you’re using: FICO and VantageScore. For both, the highest possible score is 850, but you can have an “Exceptional” or “Excellent” score below that.

FICO scores range from:

Exceptional: 800–850
Very Good: 740–799
Good: 670–739
Fair: 580–669
Poor: 300–579

And VantageScore 3.0® brackets are:

Excellent: 781–850
Good: 661–780
Fair: 601–660
Poor: 500–600
Very Poor: 300–499

Is it possible to have a perfect credit score?

It’s absolutely possible to have a perfect credit score. But only about 1.5% of American consumers have a score of 850, and the average credit score is 714.

Don’t feel bad if your score isn’t perfect (or close to it). A credit rating doesn’t define you as a person. It’s just a financial tool that helps potential lenders determine how likely you are to pay back debt based on your previous behaviors. It doesn’t necessarily show how financially responsible you are in practice.

How to get a perfect credit score: 5 tips

The only way to establish credit is to use credit — and the better your credit rating, the easier it is to get access to larger amounts and lower interest rates. Here are five tips to boost your score over time:

1. Pay your creditors on time

On-time payments are the single most significant factor when calculating your creditworthiness, so missing a payment can make a huge impact. Fortunately, most lenders offer a 30-day grace period before they consider your debt past due — and if you do miss, your credit score can recover, so long as it doesn’t become a habit. Set monthly payment reminders for yourself to keep lateness and missed bills to a minimum.

2. Avoid maxing out your credit lines

The second largest factor contributing to your credit score is your credit-to-debt ratio. This represents how much of your credit you’re consistently using every month. For example, if your credit card limit is $10,000 and you use $1,000 of it, your ratio is 10%.

Using a large amount of your available credit every month can be a warning light to lenders because it shows you might not have enough money to pay them back. Ideally, keep your credit-to-debt ratio below 25%, and if you feel you can trust yourself, accept credit limit increases when offered by your creditor to increase the gap between your limit and what you use every month.

Just remember: Don’t borrow beyond your comfort level in an attempt to improve your credit score. This is risky and likely not worth the benefit.

3. Avoid closing established credit lines

A good portion of your credit score is based on the length of your credit history. This is one reason older people tend to have better credit ratings than younger ones.

If possible, avoid closing credit cards and lines of credit, particularly those you’ve had for a long time. They could be playing a key role in maintaining your credit score. And if you’re young and don’t have a ton of credit yet, consider finding small ways to build your history.

4. Have a variety of credit types

Part of your credit score comes from having a healthy mix of these three types of credit: revolving, installment, and open credit. Revolving credit, typically credit cards, is a form of debt you can borrow with flexibility up to a pre-approved limit. Installment loans are set to be paid back over a period of time, like student and car loans. Finally, open credit doesn’t have a set limit. Instead, it’s usage-based, like your electricity or gas bill. These diverse forms of credit show lenders that you’re capable of managing your money in multiple ways.

5. Be strategic about applying for new credit

The last portion of a person’s credit score is determined by how many times they experience a hard credit check, which happens when you open a new line of credit. It’s normal to get a new credit card or apply for a loan once in a while, but too many hard checks in a short period can signal that you may be a lending risk.

Where possible, limit how often you get your credit checked. When you need one, ask if it’s a hard or soft check. Unlike hard credit checks, which temporarily impact your credit score, soft credit checks don’t have an effect.

If you want to know your credit score for free — and without a hard check — use EarnIn’s Credit Monitoring Tool to see your Vantage Score 3.0®. Get instant access to your current score and usage to check if your score’s increasing month to month.

And with EarnIn, you have the Cash Out Tool, which lets you access your paycheck as you earn it — up to $100/day and up to $750/pay period, with no interest, no membership fees, and no credit checks. You can rely on credit cards far less when you make every day payday.

5 benefits of having a good credit score

Here’s a list of some benefits a high credit rating can provide:

1. Lower interest rates. Lenders view consumers with higher credit scores as more likely to pay on time, so they charge less interest. The higher your score, the less you end up paying over time.

2. Higher credit limits. Consumers with high credit scores can borrow more money because lenders consider them to be more trustworthy.

3. Easier credit approval. A good credit rating increases your chance of getting approved for a new credit card, car loan, or mortgage.

4. Fewer deposits. Many utilities, like gas and electric, require an upfront deposit or a soft credit check to set up service. But with a high credit rating, you might be able to avoid this process, meaning you can set up the accounts faster and with less stress.

5. Lower insurance premiums. Many insurance companies offer lower home and auto insurance premiums to consumers with good credit scores.

Track your credit score and get paid as you work with EarnIn

Want to monitor your credit score easily? EarnIn has you covered.

EarnIn’s free Credit Monitoring Tool lets you monitor your score and get personalized tips to build a stellar credit history. And the Cash Out tool lets you access your wages as you work with no interest, no mandatory fees, and no credit checks.

Try EarnIn today and experience money at the speed of you.

Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.

1. Calculated on the VantageScore® 3.0 model. Your VantageScore 3.0 from Experian® indicates your credit risk level and is not used by all lenders, so don't be surprised if your lender uses a score that's different from your VantageScore 3.0. Learn more: https://www.experian.com/assets/consumer-information/product-sheets/vantagescore-3.pdf

2. EarnIn is a financial technology company, not a bank. Banking Services are provided by Evolve Bank & Trust, Member FDIC. Subject to your available earnings, Daily Max and Pay Period Max. EarnIn does not charge interest on Cash Outs. EarnIn does not charge hidden fees for use of its services. Restrictions and/or third party fees may apply. EarnIn services may not be available in all states. For more info visit earnin.com/TOS.

3. Calculated on the VantageScore 3.0 model. Your VantageScore 3.0 from Experian® indicates your credit risk level and is not used by all lenders, so don’t be surprised if your lender uses a score that’s different from your VantageScore 3.0. Learn more: https://www.experian.com/assets/consumer-information/product-sheets/vantagescore-3.pdf

4. EarnIn is a financial technology company, not a bank. Banking Services are provided by Evolve Bank & Trust, Member FDIC. Subject to your available earnings, Daily Max and Pay Period Max. EarnIn services may not be available in all states. Restrictions and/or third party fees may apply, for more information please visit http://EarnIn.com/TOS.