We all know that your credit score is a three-digit number that lenders look at to determine your financial responsibility.

There are two main scoring models out there, FICO and VantageScore. Both of these models use relatively the same scoring sheet that determines your credit score. On the lower end of the scoring model, you’re looking at a 300 credit score, and on the high end of their credit score, you’re looking at it about 850. Even though the highest score you can achieve 850, anything above 740 using both of these scoring models is considered good by any lender out there.

What is the Highest Credit Score?

Well, we’ve already covered it the highest score is 850. It does take quite a bit of discipline to achieve such a score. It’s actually stated that 1% of customers have an 850 credit score. If you think about how long I can take one person to go from a no credit score to 850 your mind is boggled. So how exactly are you able to get the highest credit score?

Well, it has been reported that customers who have the highest of credit score they have three main things that they replicate. That is being on time, not using much credit, how many extremely long credit history and rarely ever have credit checks initiated on them.

Your credit score is made up of many different factors and you can check them out here. But we can give you a rough understanding as to what you should be doing then sure you’ll be able to increase your credit score over time and Achieve that high credit score of 850.

  • Payment history. You make your payments 100% of the time on time all the time.
  • Credit utilization. The industry standard is just saying don’t use anything more than 30% of the credit that you have. People who have 850 credit score actually use anywhere between 1 to 10% is their credit, it looks a lot better and they can pay it off much quicker.
  • Account diversity. ¬†They utilize the advantage of having multiple accounts. They take your time and build a reputation with all the different credit accounts an on reflecting how much of a responsible person they are when it comes to their finances.

There are many other things that can be considered but the above are the most common three. A few other tips are having less than three hard credit checks done in the past two years. I have no negative Items on their credit report. That means no collections accounts, no late payments, no bankruptcies, nothing.

Does a Perfect Score Matter?

A lot of people believe that you can read tons of benefits by having a perfect credit score. We’re here to burst that bubble. The most lenders out there if you have a credit score above 740, you’re automatically put in that pool of perfect followers. This means that you’re in the category of anyone with a credit score of 850. You may ask yourself well that’s a hundred and ten points of a difference, it’s true it is. But the reality is if you’re able to maintain that excellent credit score you won’t be missing out on many benefits. For instance, if you have an 800 credit score, your benefits won’t be any different than someone who has an 850 credit score.

But if you’re still determined to hit that perfect goal of 850 there are many things you can do. Definitely review how your credit score is compiled and what factors are most important. Capitalize on them so you’re bringing the most benefit to building your credit score. If you want to check out what factors are compiled into your credit score, check out our explanation here.