Ever wonder what it would take to have a PERFECT credit score? Actually, Fair Isaac Corporation, creator of the FICO credit scoring system (maximum score = 850), is on record stating that a perfect score is impossible. Apparently the best you can reasonably hope for is 820 to 840. Approximately 1% of the population is in the 840 range. Who are these people and what does their credit look like? Here’s what their credit history generally looks like:
* a very long history of credit use (something like 30 years!)
* a few accounts with about 20 years of positive credit use
* at least one installment loan (mortgage or auto loan) in good standing
* between four and six revolving accounts (credit cards) in good standing, with balances less than a third of the credit limit
* no late payments (more than 30 days past due) in the last seven years
* nothing derogatory, like a bankruptcy, a collection account or the purchase of a Chia Pet (just kidding on that last one!)
* and very few credit inquiries, less than three in any six month period.
The bottom line is, you don’t really need a perfect credit score. In my experience, any score in the high 700’s or the 800’s will get you the best rates on any credit you might need.