August 26, 2024

Is it Possible to Have a 900 Credit Score?

A high credit score comes with many financial perks, from better loan terms to higher credit limits. And the higher your score, the more benefits you see.

But how high of a credit score can you actually have? Is it possible to have a 900 credit score?

We’ll explore the answer to that question and some related ones in this guide.

What is the highest credit score possible?

To start off: No, it’s not possible to have a 900 credit score in the United States. In some countries that use other models, like Canada, people could have a score of 900. The current scoring models in the U.S. have a maximum of 850.

And having a credit score of 850 is rare. According to the credit reporting agency Experian, only about 1.3% of Americans have a perfect credit score, as of 2021. The average score is 714.

The two primary credit scoring models used in the U.S. are the FICO score and VantageScore. The boundaries of each ranking vary slightly, but generally, there are five credit score ranges. In both, 850 is a “perfect” score:

Rating	FICO	VantageScore
Exceptional/Excellent	800–850	781–850
Very Good/Good	740–799	661–780
Good/Fair	670–739	601–660
Fair/Poor	580–669	500–600
Poor/Very Poor	300–579	300–579

How are credit scores calculated?

Credit score calculations vary between the credit reporting agencies but share five main ranking factors. FICO scores and VantageScores weigh these factors differently, resulting in slightly different scores on either model.

Payment history (~35%)

Payment history is the single most significant contributor to a person's credit score. Over a third of the calculation depends on a borrower making on-time payments, which is the most important thing a person can do to build and maintain a high credit score.

Credit utilization (~30%)

Credit utilization is the second largest factor impacting one's credit score, at around 30%. This refers to how much credit you use out of the total credit available.

For example, if a person has a $1,000 credit card and uses $800 monthly, they have an 80% utilization ratio. A person with a $10,000 credit limit and who spends $2,500 monthly has 25% utilization.

To improve your credit score, do your best to keep your utilization at 30% or below.

Length of credit history (~15%)

A credit score is a number representing a person's history with debt, and about 15% of a person's credit rating comes from the length of their credit history.

If you’re building credit for the first time, you’ll have a harder time improving your score than someone who has been making regular payments for a decade.

Credit Variety (10%)

Credit variety is roughly 10% of a person's credit rating and is determined by a borrower having a mix of lending products. There are three categories of lending products:

Revolving credit. Credit that can be flexibly accessed with no specific repayment terms, like credit cards. Most cards have a 30-day grace period before payments are due.
Installment loans. Installment loans are when individuals borrow a specific amount and have a specified payment amount to repay over a fixed period, like a student loan.
Mortgages. Similar to installment loans, mortgages are for houses where a borrower lends a specific amount to be repaid over a 20 to 30-year term.

New Credit and Credit Inquiries (~10%)

The final 10% of a person's creditworthiness comes from how often they request to open new accounts. If you apply for a new loan, the lender performs a “hard check” on your credit, which can knock your score down. This is temporary and will likely be reserved when you start paying off your new debt.

Keep in mind that every check impacts your score. Be thoughtful about what you’re applying for. Space out your applications or try to get pre-approved for loans so you don’t have too many checks in a short period.

What are the benefits of having a perfect credit score?

By focusing on the factors contributing to your credit score, you too can build an excellent one and reap these benefits:

Better borrowing terms. Higher credit scores make borrowers more desirable to lenders by proving they have a reliable track record of repaying money. Because of this, people with higher credit ratings are more likely to get low interest rates on the money they borrow.
Premium card eligibility. Consumers with good credit scores are most likely eligible for premium credit cards with better benefits and rewards.
Larger borrowing amounts. Lenders are most comfortable lending larger amounts to individuals with high credit scores.
Insurance discounts. Many insurance companies offer discounts to customers with good credit scores.
Avoid deposits. Most utility and telecommunication companies require a deposit to set up a service. Having good creditworthiness often allows consumers to avoid the inconvenience of paying those deposits.
More housing opportunities. Many landlords and property management companies check the credit scores of potential tenants. A good score improves your chances of landing your desired rental.

Frequently asked questions

How many people have a credit score over 800?

Roughly 25% of Americans have an excellent credit score of 800 and over.

How can I monitor my credit score and improve it?

A free credit monitoring service like EarnIn's Credit Monitoring Tool lets you check your score whenever you need, with no hard checks. You can keep an eye on your score’s improvements to better plan for loan applications.

How often should I check my credit report?

In addition to using a credit monitoring app, credit reporting agencies like Experian, Equifax, and TransUnion are all required to provide you with a copy of your credit report once a year for no cost at your request. It’s good to check once a year to make sure your reports are accurate.

Track your credit score progress with EarnIn

Stay informed about your credit progress to be confident about your financial choices. EarnIn's Credit Monitoring tool empowers you to track your financial health and start making real progress toward your goals.

Download EarnIn today.

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. EarnIn services may not be available in all states. 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.