Select Page

A lot of people think that to be considered to have “perfect” credit, you need to have a score of 850. After all, that is the highest credit score possible on the standard range of credit scoring. However, as described in the previous post about the possibility of achieving a credit score of 900 or greater, to be considered as perfect credit you really just need to be at a score of 799 or above.

Anything from that score, or higher, is all the same – being at 850 will not get you any more advantages than someone who has a score of 800. Some experts even argue that perfect credit begins at a lower score, at around 751 or above. However, a little bit of research by our team here has indicated that the bar is a little bit higher than that.

While you may think that getting a perfect credit score is not attainable, when you think about it is not being at 850, and instead think of it as being around 800 or above, then it is a much more feasible goal. If you’re already in the range of 750, which is excellent credit, it is definitely within your reach.

How Many People Have a Perfect Credit Score?

After studying a large sample of the population, research has shown that credit scores fall in the following proportions (percentages are rounded to the nearest whole number):

  • 15%: Perfect Credit Score (800 – 850)
  • 14%: Excellent Credit Score (750 – 799)
  • 14%: Good Credit Score (700 – 749)
  • 16%: Fair Credit Score (640 – 699)
  • 41%: Bad Credit Score (300 – 639)

If you don’t know what your score is, there are plenty of places on the web where you can check for free. Knowing what your score is, and what is factoring most into your credit-worthiness, are the first steps to be on your way to a perfect score. However, as we’ll go into below, you don’t need to be at 850 to be perfect. We’ll also get into some tips to help boost you up into that range.

Why 850 Isn’t a Perfect Credit Score

How many people do you think have the maximum score of 850? According to the major credit-scoring firms like FICO, only around 1% of credit users fall into this top spot. Do you think only 1 out of 100 people what score is considered perfect?could be considered candidates for perfect credit worthiness? Of course not! It wouldn’t make much sense for creditors to have special products that only apply to such a small demographic.

Do you ever recall seeing an advertisement from a credit company that offers something for perfect credit? No way. You’ll see language about “good credit” or “excellent credit”, as this opens up their target market to a much broader swath of the population.

Where the line is drawn between what is excellent credit and what is perfect credit is subjective and will differ depending on the source. What it comes down to is what is the risk and reward for a potential creditor extending financing to a particular candidate. The point where that delineation, between excellent and perfect, is somewhere between 750 and 800, depending on the creditor.

However, you don’t necessarily need to be at around 800 (or higher) to get the best rate. Typically, being at 750 or above is considered to be of no credit risk, and will open up the best financing for you. To be safe, though, getting to 800 sure won’t hurt your chances for better terms. Instead of thriving for 850, shoot for whatever is needed to qualify you for the best terms. Investing your time in raising your credit score is an investment in yourself and your future!

How to Build Perfect Credit

Here are a few ways that you can inch your score upward, and they are all easy to implement.

  • Pay two times a month: Obviously, you need to pay your bills on time every month, so that means at least one monthly payment to meet your monthly obligation. However, if you pay a second time towards a debt each month, you can lower your credit utilization, and also lower the balance that will be charged interest.
  • Maximize your credit limits: Another way to lower your credit utilization, other than paying down your balance, is by raising the other side of the equation by maximizing your credit limit. Even if you have no plans on using it, asking your credit card company to raise your limit gives you a bigger denominator to determine your credit utilization. It is free to ask, though make sure you know whether or not a hard inquiry will be pulled on your credit file for them to make a decision. Some do, but most don’t. Most credit card companies allow you to request a limit increase every 6 months. Make it a habit to ask whenever available – it doesn’t hurt to ask!
  • Check your score regularly: Knowing what your score is, and what factors are playing the biggest part in your score, helps you stay on top of what you need to do to continue to raise your score. Knowledge is power!

You’ll want to check your credit score at the three major bureaus, because that is what any lender will look at.

Tim Schmidt

A Florida-based Entrepreneur, Author, and Life Hacker, Tim Schmidt decided to take control of his retirement portfolio several years ago by setting up a self-directed IRA. This website shares his thoughts and opinions on retirement, investing, and managing credit. You can follow his career and travels on his Official Website as well as on his Instagram page.

IRA Investing For Retirement

How to Pay Off Your Mortgage in 5 Years

Many years ago I had a good friend of mine share a calculator that allowed me to see what the benefit of making an extra payment to my mortgage would do to my overall end payoff of my home.  I found that by making even simple payments of an extra $50 or $100 on a...

Smart Money Moves to Make in Your 20s

I follow several YouTube Channels that have to do with investing.  Some deal with retirement, others are for trading, and some are even in the cryptocurrency space.  One that I feel has a lot of great information for the generation right behind me, is Millenial...

Kevin O’Leary’s Advice for 20 Year Olds

If you are looking for tips from one of the most successful businessmen of all time, you should take a peak at this video by Kevin O'Leary.  It's his tips for 20 year olds, but I found them useful for people of all ages and walks of life. Top 5 Tips for 20 Year Olds...

Precious Metals

Retirement Tips

Best 10 Countries to Retire to in 2020

​I always read articles that tout retirement destinations with extreme caution, mainly because many of them are influenced by advertising dollars and are perhaps selling real estate on subsequent pages.  However, this Business Insider article was told from the...

Where to Donate Used Books – 10 Options to Consider

Do you love buying books? Are you the type to stop at every bookstore in your path? Do you always buy at least one new book whenever you’re in a bookstore? It’s no secret to your family and friends that you’re a book fanatic. In fact, they enable your collecting habit...

Flipping Houses for Profit

Not that long ago, I met a guy who just decided that it was time to get started in the real estate game. He decided to become a real estate agent. But he didn’t end his education there. In fact, he decided to learn all he could about renovations too. This led to him...

Stock Market

Coronavirus Putting Fear into Stocks & Retirement

The past two days have been very rough for U.S. stocks, having lost more than $1.7 trillion in market value, according to a report on Yahoo! Finance.  The sell off stems from the concerns over the corona virus outbreak that has been causing chaos on an economy that...

Is Investing In This Bull Market a Smart Move?

I recently stumbled into a new Podcast called "Exchanges at Goldman Sachs," and I found the first episode I listened to to be very informative as I try to navigate this seemingly endless bull market.  I found and listened to the podcast on Stitcher, but later found it...

Beyond Meat Price Prediction for 2020

It’s always interesting seeing what companies in emerging markets do in terms fo stock prices after a successful launch. Beyond Meat’s stock price surged shortly after it’s IPO, thanks in part to a huge movement towards plant-based proteins in society.  I’ve seen...