A woman refers to her credit card to enter numbers on her laptop.

What Is the Perfect Credit Score

7 min read

Last Updated: May 8, 2025

Table of contents

Key Takeaways

The highest FICO® Credit Score¹ is 850.
Your credit score may affect how much you pay for rent.
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.

A credit score is a three-digit number that lenders use to find out how likely you are to repay a loan. Your score is calculated using your credit history and credit report. You might see different credit score numbers depending on which credit bureau you get your credit score from—each credit bureau might use a different credit scoring model. Plus, lenders don’t always report to all three credit bureaus, meaning each bureau may have different information they're using to calculate your score.

Some lenders prefer using specific scoring models. For instance, 90% of top lenders use FICO^® Credit Scores.¹

According to the Fair Isaac Corporation (FICO), the highest possible FICO^® Credit Score is 850, and only 1.7% of the U.S. population has it (as of April 2023). When you know what your score means you can better plan for new credit options.

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. However, your score might change what terms and interest rate a lender offers. 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. The Discover it^® Secured Credit Card helps you build your credit history with responsible use.³

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Why is your credit score important?

Your insurance company or employer can’t see your credit score. However, they can view your credit report. In general, the higher your credit score is, the easier you may be able to qualify for credit.

Jobs: Some companies perform background checks on potential new hires, but they need your 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 credit score is in the lower credit range, this signals you have a poor or unstable credit history. You may have to pay a security deposit when you start utility services, according to the Federal Trade Commission.

Insurance: Some auto and homeowner insurance companies look at your credit report. They might access specific credit information for their industry, according to the Consumer Financial Protection Bureau. Even an average credit profile is an indication that you're a less expensive risk 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, you may have to pay an security deposit or advanced rent payment, like first and last months rent. This advanced payment can be more when your credit is poor compared to someone with a high credit score.

What factors go into my credit score?

As we said above, your credit score is based on the credit history that is found on your credit report. Federal law allows you to receive one free credit report every 12 months from each of the three major credit reporting agencies. The FTC reports that the three credit bureaus have permanently extended the program to include one free report per week. You can request your free credit report at AnnualCreditReport.com (the only website authorized by the federal government).

The information given to each credit bureau may be different, which is why sometimes you’ll have different credit scores. Regardless of the information on your credit report, FICO^® calculates 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.

The amount you owe, or credit utilization, considers how much of your available credit that you’re using. If you’re using a lot of your credit (high utilization), it could impact your credit score. Lower utilization means less credit risk and has a positive effect on credit 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 credit card.²

Your credit mix looks at the types of credit you have (credit cards, mortgages, personal loans) and considers how well you manage them. When you’re 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 a hard inquiry into your credit history. 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. 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.

Remember, you can get one free report per week at AnnualCreditReport.com.

As a Discover^® Cardmember, you can get a free Credit Scorecard with your FICO^® Credit 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.¹

See If You’re Pre-Approved

Limit the amount of new credit you apply for

It can affect your credit score any time you submit a new credit application. That’s because lenders will often do a “hard inquiry” on your credit before they approve the loan. Too many hard inquiries, within a short period of time might 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, a secured credit card might help build your credit history. Secured credit cards often require a deposit, and your starting credit limit might be equal to the deposit amount. But, with a Discover it^® Secured Credit Card, you can get your deposit back after six consecutive on-time payments and six months of good status on all your credit accounts.³

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What Is the Perfect Credit Score

Key Takeaways

Did you know?

Why is your credit score important?

What factors go into my credit score?

Payment History (35%)

Amounts Owed (30%)

Length of Credit History (15%)

Credit Mix (10%)

New Credit Inquiries (10%)