How long will it take to get credit score to 800?
The longer you've been using credit, the more it means to your credit score. Members of the 800 Club average just under 22 years of using credit. Even the youngest ones, Millennials, average more than 14 years.
If you possess a good credit history and maintain a low credit utilization ratio, reaching an 800 credit score could be achievable within a few years.
An 800 credit score is not as rare as most people think, considering that roughly 23% of adults have a credit score in the 800-850 range, according to data from FICO. A score in this range allows consumers to access the best credit card offers and loans with the most favorable terms.
Given that the average credit score for people aged 18 to 25 is 679, a score between 679 and 687 (the average for people aged 26 to 41) could be considered “good”.
- Pay Your Bills on Time – All of Them. Paying your bills on time can improve your credit score and get you closer to an 800+ credit score. ...
- Don't Hit Your Credit Limit. ...
- Only Spend What You Can Afford. ...
- Don't Apply for Every Credit Card. ...
- Have a Credit History. ...
- What an 800+ Credit Score Can Mean.
A credit score of 900 is not possible, but older scoring models that are no longer used once went up to 900 or higher. The highest possible credit score you can get now is 850.
A 900 credit score may be the highest on some scoring models, but this number isn't always possible. Only 1.31% of the population can achieve a credit score of 850, so there's a certain point where trying to get the highest possible credit score isn't realistic at all. Having good credit can start at around 700.
So, given the fact that the average credit score for people in their 20s is 630 and a “good” credit score is typically around 700, it's safe to say a good credit score in your 20s is in the high 600s or low 700s.
It might also be hard to achieve an 800 credit score until you have a mix of credit under your name. We're not saying you should take out a mortgage or a car loan just to get your credit score over 800, but if the only credit accounts on your file are credit cards, you might struggle to reach that 800 credit score.
This is because only 1% of these individuals will become delinquent on their loans in the future. While credit scores of 800 or above are labeled “exceptional,” a score of 750 will likely get you some of the best rates available for auto loans and mortgages.
Is 25 too late to build credit?
Whatever your situation is, it's still not too late to build or rebuild your credit. Using different credit products responsibly is typically the best way to consistently improve your credit over time. One of your goals during this time might be to travel more.
With the FICO credit scoring model, credit scores ranging from 300 to 579 are considered poor. Scores that range from 580 to 669 are considered fair. Anywhere between 670 to 739 is considered good. A credit score between 740 to 799 is considered very good.
What is a good length of credit history? While there's no such thing as the perfect “age of credit,” a FICO study reveals that for people with 800+ FICO Scores, their average age of credit accounts was 128 months (a little over 10.5 years).
- Review Your Credit Report. ...
- Pay Your Bills on Time. ...
- Ask for Late Payment Forgiveness. ...
- Keep Credit Card Balances Low. ...
- Keep Old Credit Cards Active. ...
- Become an Authorized User. ...
- Consider a Credit Builder Loan. ...
- Take Out a Secured Credit Card.
You don't need all of these account types on your credit report, but you should aim to have more than one since a person with an 800 credit score has an average of 8.3 open accounts. But don't take out an installment loan just to raise your credit score.
- Review your credit reports. ...
- Pay your bills on time. ...
- Catch up on overdue bills. ...
- Become an authorized user. ...
- Consider a secured credit card. ...
- Keep some of your credit available. ...
- Only apply for credit you need. ...
- Stay on top of your progress.
Mississippi has the lowest average FICO credit score of all states in 2023 at 680, which is 38 points below the national average. Mississippi also had the lowest average credit score in 2018, at 666.
The highest credit score you can have on the most widely used scoring systems is an 850. The widely-used FICO 8 scoring model and the VantageScore 3.0 both use a 300-850 scale. Credit scoring company FICO says about 1% of its scores reach 850.
For most credit-scoring models, including VantageScore 3.0 and FICO, the highest credit score possible is 850. We were able to speak to two Americans who belong to the exclusive FICO 850 Club: Brad Stevens of Austin, Texas, and John Ulzheimer of Atlanta.
How multiple credit cards affect your credit score. Having multiple credit cards can indirectly impact your credit scores by lowering your debt to credit ratio—also known as your credit utilization rate. Your credit utilization rate is the amount of credit you use compared to the total credit available to you.
What is a perfect credit score?
The percent of the population with the highest credit score of 850 is relatively small but has been increasing. As of April 2023, about 1.7% of the U.S. scorable population had a perfect 850 FICO® Score. That compares to 1.5% in April 2018 and 0.8% in April 2013.
Most people who have an 850 credit score have at least seven years of perfect payment history. Essentially, to get an 850 credit score, you just need to follow one simple strategy: make all of your payments on time for a long time.
Length of credit history makes up 10% of your FICO score so the older you get, the more your score is likely to rise. According to Experian® data, the average American credit score for the age group 18-24 was 679 as of September 2022. This falls in the good FICO® credit score range (670-739).
At 20 years old, you will likely have a lower score due to the shorter length of credit history and income. The average FICO credit score for this age range is around 679, which is considered "good" or "very good" but is relatively lower than someone older with more credit history.
In the U.S., the average credit score is 716, per Experian's latest data from the second quarter of 2023. And when you break down the average credit score by age, the typical American is hovering near or above that score.
References
- https://www.chime.com/blog/whats-a-good-credit-score-in-your-20s/
- https://www.equifax.com/personal/education/credit-cards/articles/-/learn/how-many-credit-cards-should-i-have/
- https://www.nerdwallet.com/article/finance/highest-credit-score
- https://www.chase.com/personal/credit-cards/education/credit-score/900-credit-score
- https://www.consumercredit.com/about-us/news-press-releases/2014/5-habits-to-get-800plus-credit-score/
- https://www.bankrate.com/finance/credit-cards/how-to-get-800-credit-score/
- https://www.netspend.com/blog/whats-a-good-credit-score-for-a-20-year-old
- https://wallethub.com/answers/cs/what-percentage-of-population-has-over-800-credit-score-2140839387/
- https://www.cnbc.com/2023/11/02/average-credit-score-by-age-in-the-us.html
- https://www.rocketmoney.com/learn/debt-and-credit/what-is-the-average-credit-score-by-age
- https://www.businessinsider.com/personal-finance/states-with-best-worst-credit-scores
- https://financebuzz.com/build-credit-any-age
- https://www.chase.com/personal/credit-cards/education/basics/average-credit-score-by-age
- https://www.moneylion.com/learn/900-credit-score/
- https://www.credit.com/blog/personal-finance-how-to-increase-credit-score/
- https://www.fico.com/blogs/perfect-credit-score-understanding-850-fico-score
- https://www.capitalone.com/learn-grow/money-management/ways-rebuild-credit/
- https://www.noradarealestate.com/blog/how-long-does-it-take-to-get-a-700-800-credit-score/
- https://tradelinesupply.com/how-to-get-an-850-credit-score/
- https://stellarfi.com/answer/what-is-a-good-credit-score-for-a-20-year-old
- https://time.com/personal-finance/article/750-credit-score/
- https://www.creditstrong.com/raise-your-credit-score-100-points/
- https://www.bankrate.com/personal-finance/credit/length-of-credit-history-credit-score/
- https://www.creditkarma.com/advice/i/how-i-got-the-highest-credit-score