What’s the Highest Credit Score Possible?
Whether you’re just starting to build a credit profile or have been in the game for some time, understanding the details of credit scores can be confusing. One of the most common questions asked is ‘What’s the highest credit score possible?’ While the exact score you need to take out the most desirable types of credit or get the best deals out there may vary, there are two main scoring models used in the United States and understanding how they work may help you gain insight into your credit rating.
The Two Credit Scoring Models
The two main credit scoring models used in the United States are the FICO score and VantageScore.
FICO Score
FICO stands for Fair Isaac Corporation and they produce the FICO credit score range. This is the score most lenders use when they evaluate loan or credit applications. FICO scores range from 300 to 850, with higher scores indicating higher creditworthiness.
VantageScore
VantageScore was created by the three major credit reporting bureaus (Experian, Equifax, and Transunion) and it is one of the newer scoring models that has been developed in recent years. The VantageScore ranges from 500-990, with higher scores again indicating higher creditworthiness.
What’s the Highest Credit Score Possible?
Both scoring models have their own ranges, but for both the highest credit score possible is actually 850. This is the highest score you can achieve using the FICO scoring system and the VantageScore model.
Maintaining Maximum Credit Scores
Maintaining a credit score of 850 is actually quite difficult and most people who maintain a score this high tend to be fanatical about their credit rating. Although the exact score you need to get the best deals on credit may vary, achieving and maintaining a score this high typically requires the same types of behaviors.
Pay Your Bills on Time
The most important factor that affects your credit score is whether you pay your bills on time. This shows lenders that you are reliable and are likely to pay your debtors back. Paying your bills on time will have a major impact on your score, so do your best not to miss any payments.
Keep Credit Utilization Low
Your credit utilization refers to the amount of credit you are using relative to the amount of credit you have available. Lenders like to see a low credit utilization ratio and your credit score will take a hit if you are using more than 30% of your available credit.
Do Not Apply for New Credit Too Frequently
Every time you apply for a new line of credit, a ‘hard inquiry’ is put on your credit report. This reduces your credit score, so try to keep your number of hard inquiries to a minimum.
Protect Your Identity
Finally, it’s important to protect your identity. Your credit score can take a hit if your personal data or account information is compromised, so it’s wise to take all the necessary steps to protect yourself from identity theft.
Achieving and maintaining a maximum credit score is possible, but it requires dedication, patience, and a commitment to improving your financial habits and protecting your credit reputation. Although the exact score you need to get the best rates may change, the highest credit score possible is 850 for both the FICO score and VantageScore models.
