Even better, just over 1 in 5 people (21.2%) have an exceptional FICO credit score of 800 or above, all but guaranteeing access to the best products and interest rates.
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.
It could take anywhere from a few months to several years to go from a 700 credit score to 800. If you want to speed up the process, focus on maintaining a flawless payment history and keep your credit utilization rate as low as possible.
“Three or four is a good number for a lot of people, but you can build credit with as little as one,” Rossman said. Research from Experian found U.S. consumers carried 3.9 credit cards on average in 2023 — down from 4.2 in 2017. But Americans with exceptional FICO scores — 800 to 850 — had 4.8 credit cards on average.
Reaching such a credit score takes time and commitment, but it's not as impossible as you might think. Experian reports that 22 percent of all consumers have achieved excellent credit, and even more (28 percent) are on their way, falling within the very good credit range.
Closing a credit card can hurt your credit, especially if it's a card you've had for years. An account closure can cause a temporary hit to your credit by increasing your credit utilization, lowering your average age of accounts and possibly limiting your credit mix.
The truth is, there's no universal “starting credit score.” While the lowest possible FICO score is 300, this isn't where you start. Instead, if you haven't started using credit yet, you have no credit history and no credit score — also referred to as unscorable or credit invisible.
There's no single, specific credit score that will automatically qualify you for a mortgage (though having the maximum score of 850 certainly never hurts). However, while lenders might not set precise qualifying numbers, they do have minimum credit score requirements.
"From the standpoint of qualifying for credit, it doesn't matter whether you have a perfect 850 or a score just below that," said Ethan Dornhelm, VP of FICO Scores and predictive analytics. "To lenders, a consumer with a score in the 800s is a sparkling applicant."
Key Takeaways. Your credit score is a major factor in whether you'll be approved for a car loan. Some lenders use specialized credit scores, such as a FICO Auto Score. In general, you'll need at least prime credit, meaning a credit score of 661 or up, to get a loan at a good interest rate.
The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024.
South Burlington, Vt., is the city with the highest credit score, while Detroit is the city with the lowest, according to personal finance site WalletHub.
Consumers with 800-plus credit scores have an average of 8.3 open accounts — similar to 7.9 in 2021. Gen Xers now have 8.6 open accounts, on average — the highest among any of the generations. While not as important as payment history or amounts owed, credit mix accounts for 10% of consumers' credit scores.
A 700 credit score is considered “very good” and opens doors to the best mortgage options available. Conventional loans offer highly competitive rates and terms at this credit level. Government-backed loans like FHA are available but may be less advantageous compared to conventional options.
Excellent (800 to 850): Lenders generally view these borrowers as less risky. As a result, individuals in this range may have an easier time being approved for new credit. Very good (740 to 799): Very good credit scores reflect frequent positive credit behaviors. Lenders are likely to approve borrowers in this range.
The average score in April 2024 stood at 715 The score as displayed ranges from 300 to 850 and is based on three different consumer reporting agencies (CRAs) in the United States, namely Equifax, TransUnion and Experian.
While income doesn't have a direct impact on your credit score, it can have an indirect impact since you need to have sufficient income to pay your bills. And if you don't make enough money to cover your bills, you can rack up debt or miss payments, which can negatively impact your credit score.
Twenty-three percent of Americans have a credit score between 800 and 850, considered "exceptional" by FICO. A credit score at the top of that range -- 850 -- is considered a perfect score. Twenty-four percent have a FICO® Score between 750 and 799, making the "very good" bracket.
Keeping a low credit utilization ratio is good, but having too many credit cards with zero balance may negatively impact your credit score. If your credit cards have zero balance for several years due to inactivity, your credit card issuer might stop sending account updates to credit bureaus.
It's possible that you could see your credit scores drop after fulfilling your payment obligations on a loan or credit card debt. Paying off debt might lower your credit scores if removing the debt affects certain factors like your credit mix, the length of your credit history or your credit utilization ratio.
Typically, leaving your credit card accounts open is the best option, even if you're not using them. However, there are a few valid reasons for deciding to close an account.