What Is a Perfect Credit Score?

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All of the major credit reporting companies use the FICO credit scoring system. “FICO” stands for Fair Isaac Corporation, which is the company that created the system. FICO scores range from a low of 300 to a perfect 850. Fox Business says lenders generally consider scores in the mid-700s and up excellent. Scores over 600 are considered good.

Anatomy of a Credit Score

Earning a perfect or near-perfect credit score requires attention to each of the score’s components. First and foremost, make payments on time. The timeliness of your payment history counts for 35 percent of the FICO score. Don’t borrow excessively and keep credit card balances low, as total debt counts for another 30 percent. The kinds of debt you have determine another 10 percent of a credit score. Applying for too many credit accounts in a short time can take up to 10 percent off the score. The last 15 percent depends on time. The longer your history of using credit well, the better your score. Some specific events, such as a bankruptcy, tax lien, loan default or foreclosure, can also hurt a credit score.


About the Author

Based in Atlanta, Georgia, W D Adkins has been writing professionally since 2008. He writes about business, personal finance and careers. Adkins holds master's degrees in history and sociology from Georgia State University. He became a member of the Society of Professional Journalists in 2009.

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