A good credit score typically falls within the range of 670 to 739, according to the FICO credit scoring model. A score within this range indicates that the individual is a relatively low credit risk and is likely to be approved for credit and loan products at competitive interest rates. However, it's important to note that different lenders may have their own criteria for what they consider a "good" credit score, so it's always a good idea to check with the specific lender you're interested in to see what their requirements are. Additionally, it's important to remember that credit scores are just one factor that lenders consider when evaluating creditworthiness, so having a good credit score is not a guarantee of approval or favorable terms.
According to a report by Experian, a consumer credit reporting agency, the average credit score in the United States varies by age group. Here are the average FICO credit scores by age group as of 2021:
- 18-29 years old: 662
- 30-39 years old: 677
- 40-49 years old: 690
- 50-59 years old: 713
- 60+ years old: 730
It's important to note that credit scores can vary widely among individuals, regardless of age. Factors such as payment history, credit utilization, length of credit history, and types of credit accounts can all affect credit scores, regardless of age.
In the United States, the highest possible credit score is 850, according to the FICO credit scoring model, which is the most commonly used credit scoring system. While it's technically not impossible to have a score of 900, as there are other credit scoring models out there, a score that high is extremely rare.
It's important to note that having a perfect credit score is not necessary to qualify for the best credit and loan products. Typically, a score in the "excellent" range, which falls between 800-850, is sufficient to qualify for the most favorable interest rates and terms.
The exact number of people with an 850 credit score is not publicly available, as credit reporting agencies and scoring companies do not disclose this information. However, according to FICO, less than 1% of consumers who have credit scores have a perfect 850 score.
It's important to note that while having a perfect credit score is certainly an achievement, it's not necessary to qualify for the best credit and loan products. Generally, having a score in the "excellent" range, which falls between 800-850, is sufficient to qualify for the most favorable interest rates and terms.
Several factors can help raise a credit score, including:
1. Payment history: Paying bills on time and in full is one of the most important factors in building a positive credit history and improving credit scores.
2. Credit utilization: Keeping credit card balances low relative to credit limits can improve credit scores. A general rule of thumb is to keep credit utilization below 30% of the available credit limit.
3. Length of credit history: The longer an individual's credit history, the more positively it can impact their credit score.
4. Mix of credit: Having a mix of different types of credit accounts, such as credit cards, installment loans, and mortgages, can help improve credit scores.
5. New credit inquiries: Too many new credit inquiries can lower credit scores, so it's important to only apply for credit when necessary.
It's important to note that improving a credit score takes time and effort. Consistently practicing responsible credit behavior over time is the most effective way to raise a credit score and maintain a positive credit history.