Which person is most likely to have the best credit score?
About 70% of people with perfect credit scores are baby boomers (defined by Experian as people age 57 to 75) and members of the silent generation (ages 75 and above). Generation X (ages 41 to 56) account for about 22% of people with perfect scores.
Although a lot of people might like the idea of a perfect credit score, they'd likely have a hard time actually achieving it. In the U.S., only about 1.7 percent of the scorable population had a perfect 850 FICO credit score in April 2023, according to FICO data.
Expert-Verified Answer
The highest credit score will be for a person who maintains a low debt-to-credit ratio.
Pavelka, 56, has a credit score of 848 out of 850. The letter he got from the credit bureau recently said his score "ranks higher than 100 percent of U.S. consumers." That makes Pavelka a financial anomaly. While an 848 isn't a perfect score, it's as high as most experts have ever seen.
- Minimal credit history. If you don't have a long credit history, your score could be lower than the average. ...
- High credit utilization. ...
- Late payments. ...
- Collections. ...
- Bankruptcy.
76.1% of consumers have a FICO credit score above a 650 as of April 2023.
Fortunately, no one's credit score can equal zero – the range for FICO scores is 300-850 – and even people with poor or bad credit have a credit score of at least 300. A “no credit score” means there is insufficient information for a credit score calculator to compute a score.
A credit score of 999 from Experian is the highest you can get. It usually means you don't have many marks on your credit file and are very likely to be accepted for a loan or credit card.
Less than 21% of people have a credit score over 800. A credit score of 800+ is considered perfect credit, indicates that a borrower uses credit very responsibly, and qualifies the person for the best loan and credit card terms.
A person or business is considered to have bad credit if they have a history of not paying their bills on time or they owe too much money.
Which credit score is the best quizlet?
800+ is exceptional. 740-799 is very good. 670 to 739 is good and represents median credit score. Factors that determine interest rates.
In 1956, engineer Bill Fair teamed up with mathematician Earl Isaac to create Fair, Isaac, and Company to create a standardized, objective credit scoring system. In theory, a standardized rubric would eliminate the prejudice inherent in the credit evaluation and lending practices used for many years.
A credit score of 1,000 is not possible because the standard credit score range used by FICO and VantageScore is 300 to 850. Other credit scoring models have a high of 900 or 950, but they are industry-specific and only used by certain financial institutions.
While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
Credit scores by race and ethnicity
Majority Black, Hispanic and Native American communities have at least 1.5 times the rates of subprime credit scores, debt in collections and high-cost non-bank borrowing (such as payday loans) compared to majority-white communities, according to data from the Urban Institute.
What is a good length of credit history? While there's no such thing as the perfect “age of credit,” a FICO study reveals that for people with 800+ FICO Scores, their average age of credit accounts was 128 months (a little over 10.5 years).
Around 33% of Americans have a bad FICO credit score (between 300-620). In 2021, the average credit score in the United States was 711, with around 16% of adults having a credit score lower than 579.
According to Credit Sesame's Personal Finance and Credit Survey May 2022, it is possible to have a low income and a high credit score. There is an expectation that low income earners have low credit scores. In fact, the data show low earners can beat the odds and earn good credit scores.
According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.
There's a common myth that you are assigned a credit score at birth or when you receive a Social Security number, but that's not the case. There are a few reasons why you may not have a credit score, such as: You haven't had time to establish credit yet, possibly due to only recently becoming eligible for credit.
Is it OK to have no credit score?
Lenders use your credit score to decide, based on your past experience with credit, whether to work with you and what interest rates and terms to offer. Without a credit score, you'll likely have difficulty getting certain types of credit because lenders have no way to evaluate your creditworthiness.
Having no credit is better than having bad credit, though both can hold you back. Bad credit shows potential lenders a negative track record of managing credit. Meanwhile, no credit means lenders can't tell how you'll handle repaying debts because you don't have much experience.
A credit score of 1,000 is not possible because credit scoring models simply do not go that high. According to Experian, some credit scoring models reach upwards of 900 or 950, but those are industry-specific scores that are only used by certain institutions.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
Consider yourself in “good” shape if your credit score is above the average for people in your age group. Given that the average credit score for people aged 18 to 25 is 679, a score between 679 and 687 (the average for people aged 26 to 41) could be considered “good”.
