A credit score greater than 800 is considered excellent, and it is indeed achievable. In fact, a significant number of people in the U.S. have credit scores within this range.
A credit score is a numerical representation of a person’s creditworthiness, which lenders use to evaluate the likelihood that the person will repay debts. The most widely used credit scores are FICO scores, which range from 300 to 850.
Here’s how FICO scores are typically interpreted:
- 300-579: Very poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very good
- 800-850: Exceptional
A score above 800 demonstrates to lenders that a person is an exceptional borrower, likely to repay loans on time. This is achieved by maintaining a history of responsible credit use, including paying bills on time, keeping credit utilization low, and only opening new credit accounts when necessary.
While it may seem like a score above 800 is rare, many Americans do indeed have such scores. According to a 2019 report by FICO,
approximately 21% of the U.S. population had a FICO score over 800.
These individuals usually have a long credit history with a mix of account types, such as credit cards, student loans, mortgages, etc. They also have few, if any, negative marks on their credit reports.
It’s worth noting that achieving a credit score above 800 is commendable, but scores above 740 are generally enough to qualify a person for the best interest rates and terms on credit products. However, a score above 800 can provide a buffer, in case of future financial mishaps that might drop the score a bit.
It’s also important to note that while having a high credit score is beneficial for securing loans and getting good interest rates, it is only one factor that lenders consider. Your income, job stability, and the amount of debt you already have are also important.