There are two major credit-scoring models: FICO® Score and VantageScore. According to FICO, the FICO® Score is by far the most commonly used by top lenders, and it's the score we will discuss here. FICO uses consumer credit data to generate three-digit credit scores, ranging from 300 to 850, with 850 being the best possible score.
Since 2021, the average FICO® Score has been 716, with fewer than 1 in 4 Americans carrying a score of 800 or more. While that might not seem like a big deal, those who hit the 800 mark can enjoy some rather nice perks. Here's what happens when your credit score sits at 800 or better.
Lenders are far more likely to say yes
Looking at FICO® Scores through the eyes of lenders, it's easier to understand why scores are so important. No credit reporting system is perfect, but for now, a credit score is the only yardstick lenders have to determine how well a person has managed credit in the past. It's a fast, easy way to get a snapshot of past financial behavior.
Here's what each credit score range tells lenders:
| FICO® Score range | What scores mean to lenders |
|---|
| 800 to 850 | Wow! This person pays all bills on time and doesn't carry more debt than necessary. We feel safe loaning this "exceptional" borrower money. |
| 740 to 799 | This is a "very good" score, and this person is obviously dependable. We're not worried about whether they'll repay the debt. |
| 670 to 739 | This score is "good," but doesn't blow our hair back. We'll take a closer look to ensure this borrower is in a position to repay new debt. |
| 580 to 699 | This person's score is "fair," but they seem to have hit a few bumps in the road. If they pass muster in underwriting, we'll extend a loan offer. However, their interest rate will be higher because we're not totally confident they can make payments as promised. |
| 300 to 579 | This "poor" credit score indicates that this applicant has had trouble managing credit. If we approve a loan, the interest rate and fees are going to have to be at the top of our range because we're taking a risk. |
Data source: Author descriptions.
Within moments of viewing a credit score, a lender has an idea of how risky it would be to loan you money. A score of 800 or more tells them you're dedicated to making full, on-time payments. You're almost guaranteed a positive response whenever you apply for credit.
Your rates will be more tempting
When a lender advertises its "best" interest rate, it should always come with this disclaimer: This low rate is reserved for highly-qualified borrowers. Have a credit score of 800 or more? You are highly qualified.
While it's possible to have a credit score over 800 yet find yourself in serious financial trouble, lenders believe you'll still do everything you can to make payments as promised. And it's all for one simple reason: you've proven you're financially serious. If not, your credit score would not be so high.
When a lender offers you its lowest interest rate, it's for two reasons. The lender has no reason to believe a loan to you is risky, and it also realizes that you have options. With a credit score like yours, you can borrow from anyone. Whether you're working with a mortgage lender or borrowing money to buy a car, the lender considers you the "ideal" borrower, and it really wants your business.
With a credit score of 800 or more, you can look at the lowest rate a lender offers and say, "Oh, that's for me."
You're more likely to receive every penny requested
If you've ever been in an emergency situation and needed money fast, you may be familiar with how difficult it can be to squeeze dollars from a reluctant lender. It's different when you have an exceptional credit score. As long as the amount requested won't drive your overall debt load above the lender's acceptable level, a lender will likely loan you the amount requested.
You don't have to stress
A score of 800 or more makes borrowing easier, and it lets you off the hook in terms of fighting to boost your score. Once your credit score hits 800, it's considered exceptional. A borrower with a score of 805 is treated precisely like a borrower with a perfect score of 850.
Let's say you have a score of 730. It's considered "good," but you want more. It makes sense to take steps to raise your score because you know a higher score will save you money through lower interest rates. The same is not true when you hit 800. While seeing the number 850 associated with your credit score may be fun, there are no related benefits.
Credit scores are like puppies; they're always moving. No matter how low your score is today, it's possible to surpass the 800 mark. It takes time and effort, but people do it every day.
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FAQs
Key Takeaways. An 800 credit score shows lenders you are an exceptional borrower. You may qualify for better mortgage and auto loan terms with a high credit score. You may also qualify for credit cards with better rewards and perks, such as access to airport lounges and free hotel breakfasts.
What happens when your credit score is over 800? ›
Your 800 FICO® Score falls in the range of scores, from 800 to 850, that is categorized as Exceptional. Your FICO® Score is well above the average credit score, and you are likely to receive easy approvals when applying for new credit.
What percentage of people have credit scores over 800? ›
22% of U.S. Consumers Have Exceptional Credit
| Percentage of Consumers by FICO® Score 8 Range | |
|---|
| Range | Percentage of Consumers |
|---|
| Good (670-739) | 21.6% |
| Very good (740-799) | 28.1% |
| Exceptional (800-850) | 21.9% |
2 more rowsApr 17, 2024
Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
How rare is 825 credit score? ›
Membership in the 800+ credit score club is quite exclusive, with fewer than 1 in 6 people boasting a score that high, according to WalletHub data.
How rare is an 850 credit score? ›
As of the third quarter of 2023, 1.54% of U.S. consumers had a FICO Score of 850, according to Experian data. Some notable traits of consumers with a perfect credit score include an above average number of credit cards, lower credit utilization rate and lower than average total debt.
How many people have a 750 credit score? ›
Your credit score helps lenders decide if you qualify for products like credit cards and loans, and your interest rate. A score of 750 puts you in a strong position. Roughly 48% of Americans had a score of 750 or above as of April 2023, according to credit scoring company FICO. FICO Blog.
What is the average American credit score? ›
What is the average credit score? 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. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.
How rare is an 820 credit score? ›
Your score falls in the range of scores, from 800 to 850, that is considered Exceptional. Your FICO® Score and is well above the average credit score. Consumers with scores in this range may expect easy approvals when applying for new credit. 21% of all consumers have FICO® Scores in the Exceptional range.
What is a good credit score to buy a house? ›
It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly mortgage payments.
A credit score of 1,000 is not possible because the standard credit score range used by FICO and VantageScore is 300 to 850. Other credit scoring models have a high of 900 or 950, but they are industry-specific and only used by certain financial institutions.
What is a good credit score to buy a car? ›
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.
Does anyone have a 950 credit score? ›
Is a 950 credit score possible? In most conventional credit scoring systems, such as FICO and VantageScore, a credit score of 950 is not possible, as they typically have a maximum score of 850. However, some custom or industry-specific scoring models might use a different scale, but they are not as widely used.
What is the poorest credit score? ›
What is a bad FICO credit score?
- Poor: 300-579.
- Fair: 580-669.
- Good: 670-739.
- Very Good: 740-799.
- Exceptional: 800-850.
Average Credit Score By Age
| Average FICO® Score By Age Group In 2023 |
|---|
| Generation Z (18 – 25) | 680 |
|---|
| Millennials (26 – 41) | 690 |
| Generation X (42 – 57) | 709 |
| Baby Boomers (58 – 76) | 745 |
1 more rowJun 12, 2024
According to a report from Experian®, the average FICO credit score in America was 714 in 2022. So 600 falls below that national average. On the VantageScore range, the company says 600 scores are considered poor.
Is 1000 a good credit score? ›
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2023, the average FICO® Score☉ in the U.S. reached 715.
How to get 850 credit score? ›
According to FICO, about 98% of “FICO High Achievers” have zero missed payments. And for the small 2% who do, the missed payment happened, on average, approximately four years ago. So while missing a credit card payment can be easy to do, staying on top of your payments is the only way you will one day reach 850.
How many people have a credit score over 700? ›
Percentage of the Population by Credit Score
| Credit Score | Population Share |
|---|
| 800-850 | 21% |
| 740-799 | 25% |
| 670-739 | 21% |
| 580-669 | 17% |
1 more rowApr 13, 2023
