You Won't Believe How Many Americans Have Perfect Credit

Image source: Getty Images

The higher your credit score, the more likely you are to get approved for new loans or credit cards . And if you have perfect credit, you're even more likely than the average consumer to have success in these areas.

A perfect FICO® Score is one that's reached 850. And as of 2023, 1.54% of consumers had one, says Experian, one of the three credit bureaus.

What this tells us is that most consumers do not have perfect credit. You should also know that while perfect credit is achievable, it's not easy to get.

The good news, though, is that you don't actually need perfect credit. But that doesn't mean you shouldn't work to boost your score.

Why perfect credit isn't worth stressing about

It's hard to achieve perfect credit because sometimes, even innocent moves on your part could result in a minor drop to your score. For example, when you apply for a credit card or mortgage , the simple act of putting in an application results in a hard inquiry on your credit report. And each hard inquiry can knock a few points off of your score, putting that perfect 850 out of reach.

But one thing you should know is that there's no need to push for a perfect credit score if yours is in great shape already. Experian says that any credit score of 800 or above is considered exceptional.

So if you have a credit score of 825, there's no sense in stressing yourself out to raise it. With a score that high, you're likely to get approved for whatever credit card or loan you want unless there's another specific reason for you to be denied (in the case of a mortgage, for example, you may be turned down because your income isn't high enough).

How to boost your credit score

While you shouldn't worry at all if your credit score is at 800 or above but not quite at 850, it does pay to work on boosting a credit score that's lower -- especially a score of 739 or lower. Experian defines a very good credit score as one that's between 740 and 799. And it's good to get your score to that level (and ideally, work your way up to exceptional over time).

You should focus on a few key things when trying to boost your credit score. First, aim to pay all bills on time, since your payment history carries more weight than any other factor when calculating your credit score.

Second, aim to keep your credit card balances low, as the less of your available credit you use at once, the better it is for your score. Finally, aim to check your credit report every few months for errors, since a mistake could drag your credit score down.

You're entitled to a free copy of your credit report every week from each reporting bureau -- Experian, Equifax, and TransUnion. This doesn't mean you have to make checking your credit a weekly thing. But it's good to review your credit report on a quarterly basis in case mistakes pop up that are likely to drag your credit score down (for example, a late payment listing that isn't accurate).

There's a reason the overwhelming majority of U.S. consumers don't have perfect credit. Don't sweat it if you're not part of the 1.54% with an 850 credit score as long as your score is in excellent shape. And if not, you can always work on raising it over time.

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. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy .