Updated: Jul 28
A 900 credit score is the highest possible score on the FICO credit score scale, indicating excellent creditworthiness and a history of responsible credit behavior. Achieving a 900 credit score is no easy feat, but it is possible with the right strategies and consistent financial habits.
Understanding the FICO credit score scale
Before we dive into the strategies for achieving a 900 credit score, let's take a closer look at the FICO credit score scale. FICO scores range from 300 to 850, with higher scores indicating better creditworthiness. According to FICO, only 1.4% of Americans have a perfect credit score of 850, and only 21.8% have a score of 800 or higher.
To achieve a 900 credit score, you need to have an exceptional credit history and a track record of responsible financial behavior.
Strategies for achieving a 900 credit score
1. Pay your bills on time
Paying your bills on time is one of the most important factors in achieving and maintaining a high credit score. Late payments can have a significant negative impact on your credit score, and even a single missed payment can stay on your credit report for up to seven years. According to FICO, payment history accounts for 35% of your credit score.
2. Keep your credit utilization low
Credit utilization is the percentage of your available credit that you are using at any given time. To achieve a 900 credit score, you should aim to keep your credit utilization below 10%. For example, if you have a credit limit of $10,000, you should aim to keep your balance below $1,000.
3. Maintain a long credit history
The length of your credit history is also an important factor in your credit score. According to FICO, the length of your credit history accounts for 15% of your credit score. To achieve a 900 credit score, you should aim to maintain a long credit history by keeping your oldest credit accounts open and active.
4. Diversify your credit accounts
Having a mix of different types of credit accounts, such as credit cards, auto loans, and mortgages, can also help you achieve a high credit score. According to FICO, the types of credit accounts you have account for 10% of your credit score.
5. Limit credit inquiries
Applying for credit can also have a negative impact on your credit score, so it's important to limit the number of credit inquiries you have. Each time you apply for credit, it results in a hard inquiry on your credit report, which can stay on your report for up to two years.
Achieving a 900 credit score is a significant accomplishment that requires consistent financial discipline and responsible credit behavior. By paying your bills on time, keeping your credit utilization low, maintaining a long credit history, diversifying your credit accounts, and limiting credit inquiries, you can increase your chances of achieving a high credit score. Remember, a high credit score can have a significant positive impact on your financial future, making it easier to qualify for loans, credit cards, and other financial products at lower interest rates. So treat that score kindly!