If you were someone who wasn't satisfied in school unless you had a report card filled with As, then maybe a blemish-free 850 credit score is your adulthood equivalent. You've heard it exists, but you've yet to see the perfect credit score yourself.
But that may be OK, as "there is absolutely no advantage to having [an] 850 versus any other 800 number (or even high 700, in most cases)," Thomas Nitzsche, media relations manager for ClearPoint Credit Counseling Solutions, said in an email.
Is Perfection Possible?
While it may not be essential, the fact of the matter is, getting a perfect credit score isn't easy. Credit scoring algorithms are complicated, and even if you do take a look at your credit and see a gold-star 850, it's unlikely you'll keep it forever.
"A perfect score is possible but very rare," Nitzsche said.
And, really, once you have what is deemed "excellent credit" — typically seen as about 750 on a 300 to 850 scale, which most major credit scoring models follow — you'll likely qualify for the best interest rates and credit products anyway. Whether you have a score of 780 or a perfect 850 won't make much of a difference to anyone (except you, if perfection is your thing).
Good Habits That Lead to Excellent Credit
What we're saying is that, yes, you can get perfect credit, but you don't have to. However, working toward having great or excellent credit is certainly something to strive for. So, how do you do it?
"If you pay your bills on time, keep your balances low and apply for credit only as needed, over time you can build the credit scores you need to get the credit you want without unnecessary stress or frustration," Rod Griffin, director of public education at credit bureau Experian, said in an email.
In addition to having a strong payment history, good debt usage (which experts say is at least 30%, and ideally 10%, of your combined credit limit) and few hard inquiries, it's important to note that your age of credit and diversity of credit accounts are other factors impacting major scores. (To see where your credit currently stands, you can review your free credit report summary, updated each month, on Credit.com.)
And organized perfectionists rejoice — getting a good credit score is your time to shine.
"Those who set reminders, obsess over due dates and outstanding debt, notice when bills are missing, etc. have an advantage over those who are more impulsive," Nitzsche said.
What to Avoid
Nitzche said it's important to stay current on payments, as missing one can harm your score and keep (or significantly delay) you from achieving credit perfection.