What is the highest achievable FICO score?

By Matt Lee AAA
A:

Your FICO score is used by creditors to determine the overall credit risk of any individual consumer. This score is calculated by using a proprietary tool developed by the Fair Issac Corporation (NYSE:FIC). Each major credit bureau in the United States - Experian, Equifax (NYSE:EFX) and TransUnion - uses Fair Issac's technology to calculate a FICO score for any borrower. The more information the credit bureau has on you, the more accurate their calculation of the FICO score will be. This is why you may have a different FICO score from each of the three major credit bureaus.

FICO scores range from 300 to 850, where 850 is considered to be the best score achievable. According to myFICO.com, a division of the Fair Issac Corporation, only 13% of the U.S. population has a FICO score greater then 800, while only 2% has a FICO score lower then 500. The largest proportion of the population, 27%, has a FICO score between 750 and 800. (To learn more about how your FICO score is calculated, see How Is My Credit Score Calculated?)

If your FICO score is not as high as you would like it to be, there are things you can do to improve it. First of all, be sure to keep all of your bills current and in good standing. Always pay your bills when they come due, never make any payments late, and pay more than the minimum balance on your credit cards or pay them off completely if you can. The longer you have a good payment history, the higher your credit score will be.

To learn more see Check Your Credit Report and The Importance of Your Credit Rating.

RELATED FAQS

  1. How do banks measure the Five Cs of Credit?

    Learn about the five C's of credit and what qualitative and quantitative methods banks use to measure them when evaluating ...
  2. What is the difference between the Five Cs of Credit and credit rating?

    Learn the difference between the five C's of credit and credit rating and how they are used together by banks and finance ...
  3. How can a creditor improve its Average Collection Period?

    Read about some of the ways that a business can improve its accounts receivable management practices to shorten its average ...
  4. How can I invest in credit card companies?

    Learn about the different ways to invest in credit card company stock as well as the advantages and drawbacks of each investment ...
RELATED TERMS
  1. Fullz

    A slang term that criminals who steal credit card information ...
  2. Dial-Up Card Reader

    An electronic credit card machine that sends data through an ...
  3. Soft Inquiry

    A credit report check that does not affect an individual's credit ...
  4. Balance Chasing

    The gradual lowering of a consumer’s credit limit by a credit ...
  5. Closed Loop Card

    A credit card or gift card that a consumer can only use to make ...
  6. Bust-Out

    A type of credit card fraud where an individual maxes out the ...

You May Also Like

Related Articles
  1. Credit & Loans

    Meet The Company Behind Your FICO Score

  2. Stock Analysis

    How MasterCard Likely Earned a Spot ...

  3. Charts & Patterns

    Why These Are 2015's 10-Best Financial ...

  4. Savings

    Which Are The Best Credit Cards To Take ...

  5. Credit & Loans

    Review: Old Navy Credit Cards Costs ...

Trading Center