3 Things People With Perfect Credit Scores Have in Common

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Only 1.54% of Americans had a perfect FICO® Score of 850 as of mid-2023, according to Experian. These lucky few have access to the best rewards cards, the lowest mortgage rates, and more. Even better, a perfect credit score is one sign that your finances are in great shape.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. So what does it take to join the 850 club?Here are three key things Americans with perfect credit scores have in common.1. Their credit card balances are very lowSome people think you have to carry a credit card balance to build your credit score. The truth is, the lower your credit card balances, the better — and $0 is best.The less you owe on your credit cards, the lower your credit utilization ratio will be. Your credit utilization ratio is the sum of your revolving debt (namely, credit card balances) divided by your available credit. And a low credit utilization ratio is best for your credit score.If you owe $5,000 across three cards with a combined spending limit of $20,000, then your credit utilization ratio is $5,000 / $20,000, or 25%.Americans with perfect FICO® Scores have an average credit utilization ratio of 4%, according to Experian.How to lower your credit utilization ratioThe easiest way to achieve a low credit utilization ratio is to pay off your credit cards.But you still need to use your credit cards if you want to maximize your credit score. You just want to pay them off ASAP.Your credit utilization ratio is calculated once per month, usually at the end of each statement period. So if you have a big balance when you get your statement, your credit utilization ratio will be high even if you pay your balance in full before the due date.If you pay off your credit card every few days, or right after making big purchases, you’ll be able to maintain a very low credit utilization ratio.Have a lot of credit card debt? A balance transfer credit card could help you pay it off and boost your credit score. Click here to see our list of the best balance transfer cards and start saving today.2. They always pay their bills on timeMost people have a missed payment or two on their credit report. But the average American with a perfect credit score has zero missed payments.Your payment history is the biggest factor in your credit score. Paying your bills on time will go a long way toward helping you build excellent or even perfect credit. However, even one missed payment could tank your credit score.Note that when it comes to your credit score, “late” does not mean “a day after your payment due date.” Overdue accounts are usually reported to the credit bureaus 30 days after the payment due date.Still, being even one day late can cost you, as most lenders charge late fees.3. They have very long credit historiesYour “length of credit history” is the third-biggest factor in your credit score. It includes:The age of your oldest accountThe age of your newest accountThe average age of all your accountsHow long specific accounts have been openThe longer your history of on-time payments, the higher your score will be. Here are a couple of ways to improve this factor of your credit score:Keep credit cards open as long as possible. Even if you don’t want a credit card anymore, you can use it to make a purchase every couple of months to make sure the account stays active.Don’t open more credit cards than you need. If you’re signing up for a new card every year, then your average account age won’t improve much over time.Shoot for the moon. Even if you miss, you’ll land in the high 700sNobody needs a perfect credit score. If your credit score is about 760 or higher, then it’s considered “excellent,” and you can get the best credit cards, low interest rates on loans, lower insurance premiums, and more.That said, there’s no reason not to aim for a perfect credit score. After all, you can get there by being disciplined and staying out of debt. And if your credit score is above 800, it could take a big hit and still be in the “excellent” range. Just don’t stress or obsess over achieving perfection. Anything above the high 700s doesn’t get you much more than bragging rights.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Only 1.54% of Americans had a perfect FICO® Score of 850 as of mid-2023, according to Experian. These lucky few have access to the best rewards cards, the lowest mortgage rates, and more. Even better, a perfect credit score is one sign that your finances are in great shape.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

So what does it take to join the 850 club?

Here are three key things Americans with perfect credit scores have in common.

1. Their credit card balances are very low

Some people think you have to carry a credit card balance to build your credit score. The truth is, the lower your credit card balances, the better — and $0 is best.

The less you owe on your credit cards, the lower your credit utilization ratio will be. Your credit utilization ratio is the sum of your revolving debt (namely, credit card balances) divided by your available credit. And a low credit utilization ratio is best for your credit score.

If you owe $5,000 across three cards with a combined spending limit of $20,000, then your credit utilization ratio is $5,000 / $20,000, or 25%.

Americans with perfect FICO® Scores have an average credit utilization ratio of 4%, according to Experian.

How to lower your credit utilization ratio

The easiest way to achieve a low credit utilization ratio is to pay off your credit cards.

But you still need to use your credit cards if you want to maximize your credit score. You just want to pay them off ASAP.

Your credit utilization ratio is calculated once per month, usually at the end of each statement period. So if you have a big balance when you get your statement, your credit utilization ratio will be high even if you pay your balance in full before the due date.

If you pay off your credit card every few days, or right after making big purchases, you’ll be able to maintain a very low credit utilization ratio.

Have a lot of credit card debt? A balance transfer credit card could help you pay it off and boost your credit score. Click here to see our list of the best balance transfer cards and start saving today.

2. They always pay their bills on time

Most people have a missed payment or two on their credit report. But the average American with a perfect credit score has zero missed payments.

Your payment history is the biggest factor in your credit score. Paying your bills on time will go a long way toward helping you build excellent or even perfect credit. However, even one missed payment could tank your credit score.

Note that when it comes to your credit score, “late” does not mean “a day after your payment due date.” Overdue accounts are usually reported to the credit bureaus 30 days after the payment due date.

Still, being even one day late can cost you, as most lenders charge late fees.

3. They have very long credit histories

Your “length of credit history” is the third-biggest factor in your credit score. It includes:

• The age of your oldest account
• The age of your newest account
• The average age of all your accounts
• How long specific accounts have been open

The longer your history of on-time payments, the higher your score will be. Here are a couple of ways to improve this factor of your credit score:

• Keep credit cards open as long as possible. Even if you don’t want a credit card anymore, you can use it to make a purchase every couple of months to make sure the account stays active.
• Don’t open more credit cards than you need. If you’re signing up for a new card every year, then your average account age won’t improve much over time.

Shoot for the moon. Even if you miss, you’ll land in the high 700s

Nobody needs a perfect credit score. If your credit score is about 760 or higher, then it’s considered “excellent,” and you can get the best credit cards, low interest rates on loans, lower insurance premiums, and more.

That said, there’s no reason not to aim for a perfect credit score. After all, you can get there by being disciplined and staying out of debt. And if your credit score is above 800, it could take a big hit and still be in the “excellent” range. Just don’t stress or obsess over achieving perfection. Anything above the high 700s doesn’t get you much more than bragging rights.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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