Have you always been insatiably curious about your credit score? I am. In my mind, my credit score is kind of like a report card, like a race toward personal best. (Hey, it's the best those of us with zero athletic talent can do.)
Despite widespread media reports of Americans' debt challenges, most consumers have credit scores that fall between 600 and 750. More good news: In 2020, the average FICO Score in the U.S. reached a record high 710, according to Experian.
So, speaking of an 800 credit score — what is it and should you work toward achieving it? Let's dive in.
What is Considered a Good Credit Score?
First of all, FICO scores range from 300 to 850, which translates to the following categories:
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300-579: Poor
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580-669: Fair
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670-739: Good
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740-799: Very good
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800-850: Excellent
As you can see, FICO defines a good credit score as a score between 670 to 739.
What Percentage of the Population has a Credit Score Over 800?
In April 2018, about 21% of the population had a credit score between 800-850, which represents the higher echelons of credit score possibilities.
However, that doesn't mean that most Americans don't fall into those "upper ranges." In fact, by 2020, 69% of Americans had a "good" credit score — at 670 or above. Americans have worked to get their credit into a better position than last year and even increased their scores three percentage points compared to last year.
How'd they do it? Credit card debt reduced by 14% last year and credit utilization also dropped 3.5%, to 25.3% in 2020.
Is it Possible to Get a Credit Score of 850?
Yes! You can attain a perfect credit score of 850. Some Americans have achieved it. In fact, 1.2% of all FICO Scores in the U.S. sit precisely at 850.
How do you know if you're close to 850 or way off? You can check your credit scores using a few different methods.
One thing to note: If you check your credit reports for free through Experian, TransUnion or Equifax, that doesn't mean you get access to your credit scores. (It's a common misconception.) You get your credit reports — a list of all the actions you've taken with creditors.
So how do you know your credit score? You can take various steps:
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Check with your financial institution.
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Look at your credit card statement.
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Take a look at your loan information — your lender may provide it.
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Use a credit score service or free credit scoring site.
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Purchase a credit score summary directly from one of the three major credit bureaus or another provider like FICO.
Don't be alarmed if the credit scores provided by the three nationwide credit bureaus look different. Some creditors may report information to one credit bureau, two, or all three. Therefore, all three credit bureaus might show you a slight variation on your credit score!