What Is the Highest Credit Score and How Do I Get It?

Credit

Credit scores can be complicated and hard to figure out, especially if you are new to credit. But, if you break them down into smaller parts, you’ll be on your credit-building way.

Whether you’re a personal finance enthusiast, someone new to building credit, or somewhere in between, this guide will help you understand what it takes to push your credit score to the next level.

How Credit Scores Work

A credit score is a number representing your creditworthiness, or how likely you are to repay borrowed money. The two most commonly used credit scoring systems are FICO and VantageScore. Each of the credit score models uses different criteria to calculate your credit scores, typically ranging from a minimum credit score of 300 to a perfect credit score of 850.

What Impacts Your Credit Score?

Payment History: This is the most crucial factor, making up about 35% of your score. Consistently paying your bills on time can significantly boost your score.
Credit Utilization Ratio: This measures how much of your available credit you’re using. Keeping your credit utilization below 30% can positively impact your score.
Length of Credit History: The longer your credit history, the better. Lenders like to see a well-established credit record and long credit history.
New Credit Inquiries: Multiple recent inquiries can lower your score temporarily.
Credit Mix: A variety of credit types, such as credit cards, mortgages, and auto loans, can improve your score.

What is the Average Credit Score from FICO and VantageScore?

FICO and VantageScore are two different scoring models, so your FICO score and VantageScore are probably different. The highest credit score or perfect credit score according to both scoring models is 850.

FICO Score Ranges:

Very Poor Credit (300-579)
Fair Credit (580-669)
Good Credit (670-739)
Very Good Credit (740-799)
Exceptional Credit (800-850)

VantageScore Ranges:

Very Poor (300-499)
Poor Credit (500-600)
Fair Credit (601-660)
Good Credit (661-780)
Excellent Credit (781-850)

Understanding where you are in these ranges can help you determine what steps you need to take to improve.

Aim for the Highest Credit Score You Can Get

A good credit score opens doors to numerous financial opportunities:

Lower Interest Rate: Higher scores often qualify for a lower interest rate on loans and credit cards, saving you money in the long run.
Better Loan Approval Odds: Lenders are more likely to approve your loan applications.
Higher Credit Limit: Creditors may offer you a higher credit limit, giving you more available credit and financial flexibility.
Smoother Rental Application: Landlords often check credit scores before approving rental applications. Those with higher credit scores often have an easier time getting approved for an apartment.

What Is the [Average Credit Score by Age], and What Is a Good Score for My Age?

Here’s a breakdown of the average credit scores by age group:

18-24 years: Average credit score around 630
25-34 years: Average credit score around 628
35-44 years: Average credit score around 629
45-54 years: Average credit score around 646
55-64 years: Average credit score around 696
65+ years: Average credit score around 729

You can see that the oldest age group has the highest credit score and younger age groups have a lower score. That might make you think that you have a higher credit score just because you’re older, but credit scoring has more to do with following the right strategies.

While these averages provide a benchmark, aiming for a FICO score of 700 or higher is generally considered good across all age groups.

How Many People Have Exceptional or Excellent Credit Scores?

According to FICO, approximately 1.6% of the U.S. population has a perfect FICO score of 850. While achieving this score is challenging, it is not impossible if you stick to good habits.

How Can I Build My Credit?

Working towards your new highest credit score involves some basic strategies and factors related to credit history, credit utilization, and more.

1. Make Timely Payments

Set up automatic payments to ensure you never miss a due date. Remember, payment history is crucial for your credit score.

2. Keep Balances Low

Maintain a credit utilization ratio below 30%. If possible, pay off your balances in full each month.

3. Diversify Your Credit Mix

Having a variety of credit accounts can positively impact your score. This could include a mix of credit cards, installment loans, and mortgages.

4. Limit Hard Inquiries

Try to limit the number of hard inquiries on your credit reports. While occasional inquiries are fine, too many in a short period can lower your score.

5. Review Your Credit Report Regularly

Regularly monitoring your credit report can help you stay on top of your financial health. You can get free reports from each of the three credit bureaus (Equifax, Experian, TransUnion) once a year at AnnualCreditReport.com.

How Kikoff Can Help You Build Your Credit

Kikoff can help you build credit faster with way less work. By targeting key credit factors in the background, Kikoff helps users build credit safely. Kikoff reports your monthly payments to all three major credit bureaus so that your credit profile is comprehensive and reflective of your responsible financial behavior across different lenders.

Conclusion

Whether you’re focused on getting the highest credit score possible or finding your new highest credit score, it won’t happen overnight.

Achieving the highest credit score possible involves understanding what goes into a credit score and learning strategies to build credit. Learning this info and putting these strategies into practice can steadily improve your credit score over time.

Ready to take control of your financial future? Sign up for Kikoff today and start building your credit with confidence.

Remember, your credit score is a key to unlocking various financial opportunities. Whether you’re just starting or looking to improve your score, every step you take brings you closer to financial freedom. Happy credit building!

Additional Reading

Want more info? Check out our other blog posts on topics like [renting an apartment with bad credit], [average credit score by age], and [how to build credit history]. You can also take a look at the resources below:

Understanding Credit Scores: A Comprehensive Guide from the Consumer Financial Protection Bureau.
What Is a Credit Score? from Equifax.
AnnualCreditReport.com: Get your free annual credit reports from all major credit bureaus: Equifax, Experian, and TransUnion.
What’s the highest credit score possible? An informative personal finance article from the Associated Press.
What are the biggest advantages of a good credit score? from CNBC.

The information provided in this blog post is meant for informational purposes only and does not constitute financial advice. Kikoff Inc. is a financial technology company and not a bank. The Kikoff Secured Credit Card is issued by Coastal Community Bank, Member FDIC. Terms and conditions apply & individual results may vary. Make consistent on-time payments to maximize credit building potential. Credit factors outside Kikoff, like other account balances or delinquencies, can have an impact on credit building progress. Subject to approval via identity verifications and subject to terms and conditions. Kikoff Credit Account reported line of credit intended exclusively for credit building purposes & can be used to finance the purchase of monthly Credit Service plans and/or digital educational material via the Kikoff Store. For more information, visit our Terms and Conditions and Privacy Policy. We report to the major credit bureaus: Equifax, Experian, and TransUnion. Features, tradelines, bureau reporting, & pricing may vary depending on plan purchased. This post may contain marketing messages and advertisements in compliance with the CAN-SPAM Act. Please refer to our Secured Card and Credit Account Terms for detailed product disclaimers.