Ever Wonder How To Get an 850 Credit Score? 5 Tips To Help Get You There

You know what? You’re doing great. Your hard work and diligence have paid off in the form of a credit score you can really be proud of, but you know with a little patience and effort, there’s still room to ascend. While the Motley Fool reports that the average credit score in the United States in 2021 ranges from about 688 to 711, depending on the reporting agency, you want to join that 22% that sit at FICO scores of 800 or above. And once you get there, you might as well shoot for the legendary 850 with these first steps on the path to a perfect credit score.

Mix It Up

One near constant among folks who sport an 850, or “perfect” credit score, is mixed credit. What this means is that a variety of different types of credit — such as credit cards, auto loans, personal loans and mortgages — can help you achieve the type of high-level score you’re looking for. Mixed credit can also have a significant impact on loans and interest rates, per CNBC, because it illustrates your ability to manage different types of debts. As Forbes points out, your credit mix accounts for about 10% of your credit score.

Keep Your Available Balance Up

Speaking to Forbes in 2020, Michelle Singletary, personal finance columnist for The Washington Post, says, “If you use too much credit, you’re not going to hit that 850.” And considering that credit utilization accounts for a hefty 30% of your credit score, it’s easy to see the truth in that statement. Singletary reports that in the case of FICO scores, people with 800 scores and above tend to use only about 7% of their available credit or less. 

Let Your Credit Age

Wondering how to get an 850 credit score? One word: time. No one said the road to perfection would be short, but this tactic is at least pretty easy. Credit age contributes to healthy credit scores; it’s as simple as that — keep those payments on time and over the years, your score will climb. On a similar note, avoid closing any credit card accounts (even when paid in full), as more accounts will increase your average credit age. 

Small Debt, Big Variety

This more specific strategy leverages both credit utilization and mixed credit factors. American Express  reports that while the average American has about 3.8 credit cards accounting for roughly $6,500 in debt, those with a perfect FICO score only have an average of $3,000 in debt spread over 6.4 credit cards. No one’s saying you need to get that specific, but a small overall debt spread out across a wider variety of accounts can help push that score over the edge.

Enlist a Little Help

The perfect credit score is a long-term goal, and long-term goals don’t tend to happen when you’re not looking forward — so plan for the future. SmartCredit’s ScoreBuilder feature helps bring to light what’s weighing your credit score down all while putting you on a 120-day plan for a boosted score. Because you’re going to need an ally to help keep you on the track to credit perfection.

Sources:

CNBC – This Credit Expert Has a Perfect Credit Score — Here’s Exactly How He Does It
Forbes – 8 Things You Can Learn From Those With a Perfect Credit Score
Lyn Alden Investment Strategy – How To Increase Your Credit Score to 800 and Above
American Express – Is It Possible to Get a Perfect Credit Score?
The Ascent – Average Credit Score in America: 2021 Report
Clark.com – 5 Sneaky Ways To Improve Your Credit Score