How Many Americans Have a Perfect Credit Score?
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There are different formulas for assigning a credit score. However, FICO is the most commonly used credit scoring formula. FICO® Scores fall on a scale of 300 to 850, with higher scores awarded to those with a better credit history.
A score of 850 is considered to be a perfect score on this scale, but very few people have earned an 850 score or even come close to it.
Let's take a look at how many people have perfect credit, what you'd have to do to achieve a perfect score, and whether it's even necessary to do so.
Having perfect credit is very rare
According to credit score research from The Motley Fool Ascent, just 1.31% of all Americans who have a FICO® Score have earned a perfect 850. However, the rate of people with perfect credit does vary significantly by age.
The table below shows which demographic groups are most likely to have achieved perfection.
Scores by generation | Percent of 850 FICO® Scores |
|---|---|
Gen Z | 0.1% |
Millennials | 4.1% |
Gen X | 22.4% |
Baby boomer | 59.4% |
Silent | 14.0% |
Data source: Research from The Motley Fool Ascent.
As you can see, older Americans make up a higher percentage of people with perfect credit than their younger counterparts. That's because it's really hard to get a perfect score. You need:
A good mix of different kinds of credit. That's why people with 850 scores have more credit cards than the average person and higher personal loan balances, as well.
No delinquencies. Delayed payments can send your score plummeting. While the average American has 1.8 delinquent payments, those with perfect scores have none.
A lower credit utilization ratio. Using a small percentage of your credit is important, which is why people with perfect scores have lower credit card balances.
A long average age of credit and limited inquiries are also important if you want that coveted 850, as short credit histories and too many inquiries count against you.
Do you need a perfect 850 credit score?
With so few people having perfect credit, you may feel as if achieving a score of 850 is hopeless. The good news is, you don't have to in order to be able to get the best rates and terms from creditors and in order to be able to get approved for the most competitive credit cards.
A credit score between 670 and 739 is considered to be good, while a score of 740 to 799 is classified as very good, and a score of 800 to 850 is considered to be exceptional. Since the average score among all Americans is 714, most people don't have a lot to worry about. They're well within the good credit range, so they shouldn't have too hard a time borrowing.
Of course, it doesn't hurt to try for a perfect 850 if you want. After all, maintaining good credit habits can help you out, as can a high credit score, so you can only benefit from making responsible choices to try to earn a perfect score. No one is ever going to regret paying their bills on time or not carrying large balances on their credit cards, even if their score only ends up in the 750 range.
Just don't be discouraged if you don't achieve 850 -- especially if you're young, since some factors like average credit age can be out of your control. Keep working on improving your personal score, check your credit often to be sure there are no problems, and rest assured if you're above 670, you're probably doing fine. And if you aren't at that level yet, just keep making those on-time payments and whittling away debt and you'll get there.
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