What is the highest credit score, and how would someone achieve it?
It doesn’t seem possible that an individual could have flawless credit. There are so many events out of your control like potential bankruptcy filings, or student load debt, that you may not believe it can happen.
However, finding the answer to this question can pay dividends beyond trivia night at the local pub. It may help you set goals to secure a loan or increase your limits. Accordingly, follow along with us as we look at the credit score ranges from the bottom to the top.
What Is a Credit Score?
A credit score is a representation of your creditworthiness. While there are different methods, most financial institutions will look at your FICO score. This method assigns a value to your borrower history between 300 – 850. The higher you rank, the more likely you are to receive approval for credit cards, mortgages, and other loans.
Poor (300 – 579)
The bottom tier of credit scores is often the result of several factors. Situations in your past that can place you at the bottom of this ladder are:
- Late payments
- Filing for bankruptcy
- Defaulting on a loan
- High balances on credit cards
Unfortunately, you can also find yourself with terrible credit due to fraud. If you do not catch the activity early, it can wreak havoc on your reputation with creditors. You do have options if you become a victim of identity theft, but you will need to act quickly.
Fair (580 – 669)
While you can still have problems with this range of scores, you also have room for improvement. Making a few changes in your lifestyle or habits could help you move to the next level efficiently. For instance, you could take steps like:
- Pay off credit cards with the highest balances first
- Set automatic payments for your accounts
- Run a credit score check and look for errors
- Get your loans below 30% of the maximum
According to Credit Karma, creditors can vary in how they treat the high 500’s to mid 600’s for credit decisions. More conservative lenders may deny you for more significant loans, while others may be willing to do business.
Good (670 – 739)
Getting yourself into this position makes getting more significant credit amounts possible. For example, Rocket Mortgage recommends a score of at least 620 before applying for conventional home loans. If you already own your house, you could secure a Home Equity Line of Credit (HELOC) to complete renovations.
Very Good (740 – 799)
A very good credit score typically means you may have a handful of payment problems in the past. However, putting yourself into this range indicates you have also made wise financial decisions.
A missed payment here and there can be what keeps you from getting into excellent territory. In fact, the credit bureau Equifax states that missed payments can be on your report for up to seven years.
Excellent (800 – 850)
Achieving an excellent score requires a perfect payment history and active monitoring. A few of the things you do get to this level are:
- Always make your payments early or on time
- Maintain a diversified mix of credit cards and loans
- Time the opening and closing of loan accounts carefully
- Challenge inaccuracies on your annual free credit score
What Is the Highest Credit Score?
With the information above understood, it is clear the highest credit score is 850. Nonetheless, you do not need to attain perfection to secure loans that you need. It could take years or an entire decade of flawless financial dealings to reach the zenith.
Do You Need Legal Help Related to Your Credit Score?
You may have discovered some shocking facts while answering, “What is the highest credit score?” In particular, you could have unearthed identity theft or other types of fraud. These legal situations can be severe and almost always require legal counsel to set the record straight.
We have a vast network of attorneys that specialize in whatever your needs may be. Use our free service to connect with one and schedule a consultation without obligations today. You only need to send us a request or call (866) 345-6784!