The “perfect” credit score of 850 is something that many people are familiar with. However, how many people do they really get to that score? And how different is it from the average credit score held by most Americans? In this blog, we’ll explore what the highest credit score ever looks like compared to the national average, why the difference matters, and what you can do to improve your score.
What Is the Highest Credit Score Ever?
The two most commonly used credit scoring models in the U.S. are FICO and VantageScore. Both have a maximum possible score of 850. Achieving this perfect score means you have demonstrated excellent financial habits over time. These habits include making every payment on time, maintaining low credit utilization (the amount of credit you use compared to your limits), having a long credit history, and managing a healthy mix of credit accounts.
Reaching a perfect 850 score is rare. While millions of Americans have scores over 800, only a small percentage have achieved the absolute top score. Lenders and credit reporting agencies consider a score of 850 the best possible indicator of creditworthiness, but the difference between a perfect 850 and a very good score like 780 or 800 is often minimal in practical terms.
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What’s the Average Credit Score in America?
According to recent data from Experian in 2024, the average credit score for Americans is around 715. This places the typical consumer in the “good” credit range but falls short of the “excellent” category that starts at 750 or 760, depending on the lender.
The average credit score differs according to income, geography, and age. For example, younger consumers typically have lower scores due to shorter credit histories, while older adults generally have higher scores. Scores also fluctuate from state to state based on economic factors and consumer behavior.
Over the years, average credit scores have generally been rising, partly due to better credit education and improved payment habits among consumers. However, there is still a significant gap between the average score and the highest possible score.
Key Differences Between a Perfect and Average Score
The main differences between a perfect credit score and the average one lie in how people manage their credit:
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Payment history: Those with the highest scores have a flawless record of paying bills on time. The average score reflects some missed or late payments.
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Credit utilization: People with perfect scores typically keep their credit utilization under 5%, while the average consumer uses closer to 20-30% of their available credit.
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Credit history length: A longer history of prudent credit management raises the score. Perfect score holders often have credit histories over ten years, while the average American might have three to seven years.
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Number of credit inquiries: Fewer hard inquiries on the credit report help maintain a higher score. People with average scores may have several inquiries over time.
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Number of accounts and credit mix: People with the best scores typically have a wide range of credit accounts, such as mortgages, credit cards, and installment loans, whereas people with ordinary scores might have fewer accounts or less variety.
Does Having the Highest Score Really Matter?
While having the highest credit score possible sounds impressive, it’s important to understand how lenders actually use credit scores. Most lenders treat scores above 760 or 780 similarly, offering the best interest rates and loan terms in this range. This means the difference between an 850 and a 780 might not result in any noticeable financial advantage.
That said, having a score well above the average of 715 does offer tangible benefits. You’re more likely to qualify for premium credit cards, lower interest rates on mortgages and auto loans, and better insurance premiums. However, chasing the absolute perfect score may not be necessary or practical for everyone.
How to Move from Average Toward Excellent
If your credit score is around the average and you want to improve it, focus on these key habits:
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Always pay your bills on time. The biggest component of your score is your payment history.
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Keep your credit card balances low. Try to keep your credit utilization below 10%, preferably less than 5%.
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Maintain your oldest credit accounts open to build a longer credit history.
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Avoid applying for too much new credit at once, which can lead to multiple hard inquiries.
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Regularly monitor your credit reports for errors or fraudulent activity.
By consistently practicing these habits, you can gradually raise your score closer to the excellent range.
Conclusion
While the highest credit score ever—850—is the ultimate goal for many, it’s important to remember that being above average already puts you in a strong financial position. Most lenders treat scores over 760 similarly, so improving your score from average to excellent can unlock most of the benefits without needing perfection. Focus on steady improvements through good credit habits rather than chasing the perfect number.
