How to Get an 850 Credit Score

Credit scores range from 300 to 850, with ratings from “poor” to “exceptional” depending on your score. A perfect FICO® Score is 850,¹^,² though anything over 800 is considered “exceptional.” Here are the ratings for different credit score ranges.¹

Getting an 850 credit score is possible, but it’s not easy or common. In fact, as of the third quarter of 2023, just 1.54% of Americans have a perfect credit score.³

Individuals with credit scores of 850 have a proven track record of responsible financial behavior. This includes:

• making on-time payments
• maintaining a low credit utilization ratio
• having a mix of installment accounts (like mortgages or auto loans) and revolving credit (like credit cards or personal lines of credit).

If you’re diligent and patient, an 850 credit score could be within your grasp – especially if your score already falls in the “very good” or “exceptional” range.

The best credit score unlocks numerous financial opportunities. The most significant 850 credit score benefits include the following.

• Lower interest rates: People with exceptional credit scores can secure lower interest rates on loans. A high credit score can also help you qualify for credit cards with rewards programs and perks.
• Easier financing: Excellent credit typically means a smoother process for mortgages, auto loans, and other financing needs with better terms.
• Better approval rates for top credit cards: With an 850 credit score, you’ll have a better chance of being approved for credit cards that offer significant rewards and perks.
• Improved rental approval rates: Many landlords use credit scores as part of their screening process, and a high score could demonstrate your responsibility and reliability as a tenant.⁴
• Negotiation leverage: You can also use your credit score to negotiate lower rates on existing debts or new loans.
• Better insurance rates: Insurance companies may consider your credit score when determining your premiums. A higher credit score may result in lower insurance rates.⁵

Want to build your credit score and push it to new heights? Follow these steps to achieve your goal of an 850 credit score.

Keep your credit utilization low

Credit utilization (the amount of credit you use compared to your available amount) accounts for 30% of your FICO^® Score.⁶ If you use too much of your available credit, lenders view it as riskier to approve your credit or loan application.

It’s generally recommended to keep your credit utilization below 30%.⁶ However, people with a credit score of 850 have a credit utilization ratio of around 4%.³

Mix up your credit cards

People with perfect 850 credit scores have an average of six credit cards compared to an overall average of four, with more than half of these being retail cards.³ Having multiple credit cards decreases your credit utilization ratio, which can positively impact your credit score.

That doesn’t mean you should immediately apply for four new cards if you only have two.

Be strategic when applying for loans and credit cards. Avoid applying for multiple at once, as this can negatively impact your credit score.

Look at your debt

You might think that someone with an 850 credit score would have hardly any debt, or none at all. However, people with perfect scores have an average of $245,000 in mortgage debt and $19,300 in auto loan debt.³

The takeaway? Not all debt is bad. Credit mix, which measures how well you manage different types of debt, accounts for 10% of your FICO^® Score.⁶ Having “good debt” like a mortgage or car loan can help you boost your credit score and get you closer to that magical number.

Have a longer credit history

An 850 credit score doesn’t happen overnight; it takes years of responsible financial behavior to reach that number. Data shows that 66% of people with an 850 FICO^® Score are baby boomers, and 26% are Gen Xers.³

Length of credit history accounts for 15% of your FICO^® Score.⁶ A credit history of 10 or more years, along with a reliable history of managing your credit, can help you reach 850. Keep older accounts open, even if you don’t use them, to maintain a higher average account age.

Understand your credit report and score

If your goal is to achieve an 850 credit score, check your credit report regularly. You can access your credit report at each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a week for free via AnnualCreditReport.com.⁷

Review your credit report to identify any issues. Almost half of people find errors on their credit reports, and over a quarter find serious mistakes.⁸ These errors can hurt your credit and prevent you from reaching an 850 score. File disputes immediately if you notice any issues.

Learn how to read a credit report to ensure you catch mistakes as soon as they happen.

Pay bills on time

Your payment history is the most influential factor on your credit, accounting for 35% of your FICO^® Score.⁶ To hit an 850 credit score, be diligent about paying your bills on time.

Even one late payment of 30 days or more can knock several points off your score and dash your chances of reaching 850.⁹

Set up autopay to ensure your bills are paid on time. If autopay isn’t available, set reminders on your phone and calendar to avoid late payments.

Don’t apply for credit too often

Adding one or two new credit cards could boost your score, but applying for new credit too often will have the opposite effect. New credit accounts for 10% of your FICO^® Score.⁶

Although the impact on your credit score isn’t likely to be huge, it can be enough to knock your score down a few points and prevent you from reaching 850. Only apply for credit when necessary to avoid affecting your score.

By practicing responsible financial habits and diligently checking your credit report, you can work toward the ultimate goal of an 850 credit score. As you get closer to your goal, you’ll enjoy lower interest rates, better credit card offers, and expanded loan options.

Learn how to increase your credit, whether your goal is a perfect 850 credit score or not.