Achieving a credit score of 900 is generally not possible with the most common credit scoring models like FICO® Score and VantageScore®, which typically cap out at 850. While 900 is not an attainable score, you can implement strategies to reach an excellent credit score, which is usually considered to be in the 800-850 range.
Understanding Credit Score Ranges
Most widely used credit scores, such as the FICO® Score and VantageScore®, operate on a scale from 300 to 850. An 800+ score is considered excellent and will qualify you for the best rates and offers. Therefore, the goal isn't to reach 900, but rather to maximize your score into the top tier.
| Score Range | FICO® Score | VantageScore® |
|---|---|---|
| Excellent | 800-850 | 781-850 |
| Very Good | 740-799 | 700-780 |
| Good | 670-739 | 661-699 |
| Fair | 580-669 | 601-660 |
| Poor | 300-579 | 300-600 |
Strategies to Achieve an Excellent Credit Score (800+)
Building an excellent credit score requires consistent, responsible financial behavior over time. Here are the key strategies:
1. Pay Your Bills On Time, Every Time
Your payment history is the single most important factor in your credit score, accounting for about 35% of your FICO Score. Late payments, even by a few days, can severely damage your score.
- Set up reminders: Use calendar alerts, sticky notes, or automatic payment reminders.
- Automate payments: Enroll in auto-pay for all your credit accounts to ensure minimum payments are made on time, or the full balance if you prefer.
- Prioritize payments: If you have multiple debts, ensure credit card and loan payments are always made first.
2. Keep Your Credit Utilization Low
Credit utilization (the amount of credit you're using compared to your total available credit) is another significant factor, typically making up 30% of your FICO Score. A low utilization rate indicates you're not overly reliant on borrowed money.
- Aim for under 30%: Financial experts often recommend keeping your total credit utilization below 30% of your available credit.
- Even better, aim for under 10%: To reach excellent scores, strive to keep your utilization as low as possible, ideally under 10%.
- Pay down balances: Focus on reducing balances on revolving credit accounts like credit cards.
- Consider a credit limit increase: If you're responsible, asking for a credit limit increase (without spending more) can lower your utilization percentage.
3. Review Your Credit Reports Regularly
Errors on your credit report can unfairly lower your score. Regularly checking your reports allows you to identify and dispute inaccuracies.
- Access free reports: You are entitled to a free copy of your credit report from each of the three major bureaus (Equifax, Experian, and TransUnion) once every 12 months via AnnualCreditReport.com.
- Check for errors: Look for incorrect accounts, late payments you know you made on time, or identity theft.
- Dispute inaccuracies: If you find errors, dispute them immediately with the credit bureau and the creditor.
4. Maintain a Long Credit History
The length of your credit history (how long your accounts have been open) accounts for about 15% of your FICO Score. Older accounts demonstrate a longer track record of responsible borrowing.
- Keep old accounts open: Avoid closing old credit card accounts, even if you don't use them frequently, as this can shorten your average account age.
- Use old accounts occasionally: Make small purchases on old, unused credit cards every few months and pay them off to keep them active.
5. Limit New Credit Applications
New credit accounts and hard inquiries can temporarily lower your score. While seeking new credit is sometimes necessary, applying for too much too quickly can signal higher risk. This factor generally accounts for about 10% of your FICO Score.
- Apply only when needed: Only apply for new credit when you genuinely need it, such as for a mortgage or auto loan.
- Space out applications: If you do need multiple new accounts, space out your applications over several months.
- Understand hard vs. soft inquiries: Only "hard inquiries" (from loan or credit card applications) impact your score. "Soft inquiries" (like checking your own score) do not.
6. Diversify Your Credit Mix (Responsibly)
Having a mix of different types of credit (e.g., credit cards, installment loans like mortgages or car loans) can positively influence your score, showing you can handle various credit types responsibly. This accounts for about 10% of your FICO Score.
- Don't open accounts just for diversity: Only take on new types of credit if they genuinely meet a financial need and you can manage them responsibly.
- Focus on responsible use: The positive impact comes from managing different accounts well, not just having them.
By diligently following these practices, you can build and maintain an excellent credit score, putting you in the best financial position for future borrowing needs.
