A credit score is a three-digit number that reflects a consumer’s creditworthiness. Your credit score is calculated based on your credit history, and it can vary depending on which credit bureau you get your credit score from. This is because credit bureaus may use different credit scoring models and may have different information they're using to calculate your score. Some credit scoring models are more widely used than others. For instance, 90% of top lenders use FICO® Credit Scores.2
What Is the Perfect Credit Score
Last Updated: June 18, 2024
7 min read
Key Points:
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According to FICO, the highest credit score is 8501.
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Your credit score may affect how much you pay for rent.
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You may be able to stay on top of your credit score by practicing good credit habits like paying your bills on time and limiting your credit use.
According to the Fair Isaac Corporation (FICO), the highest possible FICO® Credit Score that you can get is 850, and only 1.7% of the U.S. population has it (as of September 2023).1 You can see where your credit score lands by looking at the score ranges below:
FICO® Score Ranges (from myFICO.com)
- Exceptional: 800 to 850
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 579 or less
You don't have to have perfect credit to borrow money; lenders have different requirements for credit approval. Regardless of whether you have a perfect credit score or not, practicing good credit habits can have a huge impact on your financial future.
Did you know?
Even if you have no credit history or a history of poor credit, good financial habits can help you get on track. You can start to build a credit history with the Discover it® Secured Credit Card.3
Why is your credit score important?
While your FICO® Credit Score can’t be viewed by insurance companies or employers, they can view your credit report. Here are a few reasons you should aim for a good credit history:
Jobs: According to the Federal Trade Commission, some companies perform background checks on potential new hires (with permission). These checks can sometimes include a credit report. Making payments on time can translate to meeting your work deadlines, and low debt could mean you’ll be responsible with company finances.
Utilities: If your FICO® Score falls in the lower part of the credit range this is a reflection of a poor or unstable credit history. With a poor credit history, you may have to pay a security deposit when you start utility services according to the Federal Trade Commission. However, if you have a high credit score, you’ll typically have an easier time getting services.
Insurance: The Wisconsin Office of the Commissioner of Insurance tells us that some auto and homeowner insurance companies look at your credit history. Even an average credit profile is seen as an indication that you're less expensive to an insurance company and could have fewer losses. Because of this you may be able to save a little extra money.
Interest rates: If you have excellent credit, you typically qualify for a lower interest rate on a new credit card or personal loan. Lower interest rates mean you’ll save money on amounts that you borrow.
Credit card offers: Some of the best credit card offers require a higher credit score. If you have excellent credit, you may have less trouble qualifying for those cards.
Renting: When you rent an apartment, Consumer.gov says you may have to pay an advanced rent payment. This advanced payment can be more when your credit is poor compared to someone with a high credit score.
In general, the higher your credit score is, the easier you may be able to qualify for credit.
What factors go into my credit score?
Your credit score is based on the credit history that is found on your credit report. You have the right to a free copy of your credit report every 12 months from each major credit bureau (Experian®, Equifax®, and TransUnion®). The information on each credit report may be different, which is why sometimes you’ll have different credit scores. Regardless of the information on your credit report, according to FICO, credit reporting agencies calculate your credit score using the following categories:
Your payment history shows how you’ve managed paying your bills, including things like your credit cards, personal loans, auto loans, and mortgages.
Credit utilization considers how much of your available credit that you’re using. According to the Office of Financial Readiness, if you’re using a lot of your credit (high utilization), your credit score may be impacted. Lower utilization means less credit risk and has a positive effect on FICO® Scores.
Lenders also consider the length of your credit history. The longer your history of responsible credit use the better. But, even if you have no credit history, you can still build a credit history with a secured card.3
Your credit mix looks at your credit account types (credit cards, mortgages, personal loans) and considers how well you’ve managed them. When you’re are able to maintain a mix of credit types, it shows you’re a responsible borrower.
When you apply to a creditor, they’ll request your credit report and score. This is called a hard inquiry. If you have too many hard inquiries in a short period of time, it can suggest you might be taking on more debt than you can manage, which may hurt your overall score.
How can I stay on top of my credit score?
Pay your bills on time
Payment history has one of the biggest impacts on your credit score. If you want a good credit score, plan to pay your bills on time. To help you keep track, you can enroll in automatic payments or setup alerts that remind you when your credit card payment is due.
Limit the amount of credit you use
As mentioned above, your credit use plays a big role in your credit score. Keep your credit usage low with the following tips:
- Pay more than the monthly minimum on your credit card bill.
- Make multiple payments during the month.
- If applicable, ask for a credit limit increase on one or more of your cards.
Check your credit report
Frequent reviews of your credit report will help you quickly find errors. You can request a free credit report every year from each of the three credit reporting agencies. Visit AnnualCreditReport.com to request your free credit report.
If you find an error on your credit report, you can dispute it with the creditor or the credit bureau that had the error. If they find an error happened, they will remove the error.
As a Discover® Cardmember, you can get a free Credit Scorecard with your FICO® Score and important information behind it, like credit utilization, number of missed payments, number of recent inquiries, length of credit history and total number of accounts.2
Limit the amount of new credit you apply for
Any time you submit an application for new credit it can affect your credit score. That’s because lenders will often do a “hard inquiry” on your credit before they approve the loan. Too many hard inquiries, especially within a short period of time, indicate to lenders that you might be taking on more debt than you can handle.
What should I do if I don’t have credit history?
If you have low credit or no credit, there are secured credit cards that can help build your credit history. Secured cards often require a deposit, and your starting credit limit is often equal to the deposit amount. But, with a Discover it® Secured Credit Card, you can get your deposit back after six consecutive months of on-time payments and maintaining good status on all your credit accounts.4
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FICO® Credit Score Terms: FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.
Discover Financial Services and Fair Isaac are not credit repair organizations as defined under federal or state law, including the Credit Repair Organizations Act. Discover Financial Services and Fair Isaac do not provide “credit repair” services or assistance regarding “rebuilding” or “improving” your credit record, credit history or credit rating.
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FICO® Credit Score Terms: Your FICO® Credit Score, key factors and other credit information are based on data from TransUnion® and may be different from other credit scores and other credit information provided by different bureaus. This information is intended for and only provided to Primary account holders who have an available score. See Discover.com/FICO about the availability of your score. Your score, key factors and other credit information are available on Discover.com. Customers will see up to a year of recent scores online. Discover and other lenders may use different inputs, such as FICO® Credit Scores, other credit scores and more information in credit decisions. This benefit may change or end in the future. FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.
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Build/Rebuild Credit with responsible use: Discover reports your credit history to the three major credit bureaus so it can help build/rebuild your credit if used responsibly. Late payments, delinquencies or other derogatory activity with your credit card accounts and loans may adversely impact your ability to build/rebuild credit.
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Secured Card Graduation Transparency: Monthly reviews start your seventh month as a customer. We will refund your security deposit if you have made all payments on time for the last six consecutive billing cycles on all your Discover accounts including any loans, and you've remained in “good status” on all credit accounts you are responsible for whether they are Discover accounts or not. “Good status” means: (1) your credit report shows no delinquencies, charge-offs, repossessions, or bankruptcies for the six months prior to our review; and (2) your Discover Secured Card is not in a prohibited status at the time of our review, including, but not limited to: closed, revoked, suspended, subject to tax levy, garnishment, deceased, lost/stolen, or fraud. Monthly reviews may be delayed if you change your payment due date. We typically process your refund in 2-3 business days based on your delivery preference. If you close your account and pay in full, we’ll return your deposit within two billing cycles plus ten days.
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