Having a credit score over 800 is an impressive accomplishment that only a small percentage of the population achieves. A credit score is a three-digit number that lenders use to assess an individual’s creditworthiness and determine the likelihood that the borrower will repay debt. The FICO credit score model ranges from 300 to 850, with higher scores indicating lower credit risk.
What is Considered a Good Credit Score?
In general, a FICO credit score above 800 is considered exceptional and suggests the individual has an exemplary credit history. According to Experian data, only 1.6% of the U.S. population has FICO scores between 800 and 850 as of 2022. On the other hand, a FICO score between 700 and 749 is still considered good, and FICO scores between 750 and 799 are very good. Here is a breakdown of FICO credit score ranges:
| FICO Score Range | Credit Rating |
|---|---|
| 800-850 | Exceptional |
| 740-799 | Very Good |
| 670-739 | Good |
| 580-669 | Fair |
| 300-579 | Very Poor |
As you can see, a score over 800 puts an individual well within the exceptional credit score range. But how do you reach such a high score?
How to Achieve an 800+ Credit Score
Reaching a credit score above 800 requires diligent effort and responsible credit management over time. Here are some tips to improve your score:
- Make all loan and credit card payments on time each month
- Keep credit utilization low, below 30%
- Avoid opening too many new credit accounts
- Have a mix of credit types including installment loans and revolving credit
- Limit hard credit inquiries by only applying for credit when needed
- Build up your credit history by keeping accounts open long-term
- Correct any errors on your credit reports
The most vital factors in achieving an 800+ score are making consistent and timely payments, keeping balances low, and having a diverse credit mix. Someone with an 800 credit score likely has a long history of responsible borrowing and payment behavior.
Pay Bills on Time
Payment history has the greatest impact on your credit scores. If you consistently pay all bills including credit cards, loans, utilities, etc. on time each month, it demonstrates reliability. Set up automatic payments or payment reminders if needed to avoid missed payments. Even one 30-day late payment can drop your scores significantly.
Keep Utilization Under 30%
High balances relative to your total available credit limits (your credit utilization rate) will weigh down credit scores. Experts recommend keeping revolving utilization below 30%. Avoid maxing out credit cards, and make payments promptly to lower balances. You can also increase credit limits to lower utilization.
Have a Diverse Mix of Accounts
Lenders like to see you can handle different types of credit responsibly. Having installment loans (like mortgages, student loans, car loans) and revolving accounts (credit cards) builds a robust history. Too few accounts or only having 1 type of credit may limit scores.
With diligence and smart borrowing habits, an 800+ credit score is certainly within reach over time!
What Does an 800 Credit Score Get You?
Achieving an exceptional credit score unlocks access to the best borrowing rates and terms. Benefits of 800+ credit include:
- Excellent auto loan rates – Potential for 0% financing and under 3% APR on new vehicle loans.
- Prime mortgage rates – Access to the lowest advertised mortgage rates under 5% APR.
- Low interest credit cards – Offers for cards with 0% intro APRs for 12-15 months or longer.
- Higher credit limits – Banks more readily approve higher limits for consumers with top scores.
- Security deposits waived – 800+ scores let you skip paying security deposits for things like utilities and cell phone service.
- Better insurance premiums – You may qualify for the best rates if your score is considered for insurance.
A higher credit score signals lower risk and greater trustworthiness to lenders. You have the most leverage to negotiate favorable borrowing terms with an exceptional 800+ score.
What’s the Downside of a High Credit Score?
Are there any potential downsides to having top-tier credit? There are a few to keep in mind:
- More credit offers – Excellent credit means receiving more offers for credit cards and loans you may not need.
- Higher credit limits – Having very high limits can enable overspending. Use discretion.
- Difficulty improving – Once your score reaches 800, further improvement becomes challenging.
- Fraud risk – Thieves look to steal high-scoring identities and open fraudulent accounts.
Make sure to closely monitor accounts, statements, and credit reports to detect any suspicious activity. Opt out of pre-approved credit offers you aren’t interested in pursuing. Overall though, a FICO score over 800 has far more advantages than drawbacks.
What Percentage of People Have 800+ Scores by Age?
Credit scores tend to improve with age as consumers have more time to build history and develop healthy money habits. Very few young adults have exceptional credit, while scores peak between ages 65-74 according to FICO research. Here is the distribution of 800+ scores by age group:
| Age Range | Percentage with 800+ Score |
|---|---|
| 18-24 | 0.1% |
| 25-34 | 0.8% |
| 35-44 | 1.4% |
| 45-54 | 2.2% |
| 55-64 | 3.7% |
| 65-74 | 5.0% |
| 75+ | 4.7% |
Clearly very few Americans under 35 have top-tier credit, while scores peak around retirement age. Older generations likely have had decades to build long credit histories and demonstrate consistent payment behavior.
Why Young Borrowers Rarely Reach 800+
There are a few key reasons borrowers under age 30 almost never reach 800+ scores:
- Limited credit history – Few accounts and a short history provide less data.
- High utilization – Small limits and balances from student loans or new credit can mean high ratios.
- Credit inexperience – Younger borrowers learning how to manage credit wisely.
- Short-term accounts – Young people open and close accounts more frequently.
With very few accounts reporting for under 10 years, it’s extremely difficult to achieve top scores. Utilization also tends to run higher for younger borrowers before they establish higher limits. However, responsible use of credit from an early age sets the stage for great scores later.
Why Scores Peak at Retirement Age
On the other hand, borrowers in their 60s and early 70s benefit from decades of credit history and have often learned prudent money habits. Here are some factors contributing to peak scores around retirement:
- Multiple established accounts – Long credit history with diverse types of credit.
- High limits – Highest credit limits granted to low-risk seasoned borrowers.
- Low utilization – More disposable income to pay down balances.
- High savings – Increased assets and financial stability.
After a lifetime of using credit, these borrowers have proven reliability and low risk to lenders over many years. However, credit scores can start declining again after age 75 as people are often living on fixed incomes and have reduced access to credit.
What Percentage of Population Has 800+ Score by State?
The percentage of consumers with 800+ credit scores varies significantly by state across the U.S. This data comes from analysis of TransUnion credit reports by state:
| State | Percentage with 800+ Score |
|---|---|
| Massachusetts | 2.81% |
| New Jersey | 2.79% |
| Vermont | 2.60% |
| Hawaii | 2.60% |
| Washington | 2.38% |
| Oregon | 2.33% |
| New Hampshire | 2.30% |
| Connecticut | 2.28% |
| Utah | 2.23% |
| Maryland | 2.22% |
States with the highest percentage of top scorers like Massachusetts, New Jersey, and Vermont have populations known for strong education, higher incomes, and financial responsibility. In contrast, states with lower 800+ rates like Mississippi, Louisiana, and Nevada tend to have lower average incomes and education levels.
Why Some States Have More 800 Scores
There are a few demographic factors that likely contribute to the geographic variations in exceptional credit scores:
- Income – Higher average salaries mean more disposable income to pay bills.
- Education – Greater educational attainment promotes financial literacy.
- Age – States with older populations benefit from longer credit history.
- Urbanization – Cities have more access to credit building opportunities.
- Stability – Low poverty and unemployment signal community stability.
States like Massachusetts and New Jersey that score very highly exhibit these positive economic traits. Population demographics, education levels, income, and employment all have an influence on borrowing behavior.
Why Some States Have Fewer 800 Scores
On the other hand, states that rank near the bottom for 800+ credit scores tend to have lower socioeconomic conditions such as:
- Poverty – Being low-income makes borrowing and payments harder.
- Unemployment – Joblessness reduces disposable income.
- Lower education – Lack of financial literacy inhibits money skills.
- Rural areas – Remote locations mean fewer creditors.
- Younger population – Younger borrowers have shorter credit history.
Challenging economic realities make achieving long-term exceptional credit status more difficult. But prudent use of available credit and maintaining diligent payment routines can boost scores over time.
What Percentage of Population Has 800+ Score by Major City?
Here is the percentage of consumers with credit scores of 800 or higher in major U.S. cities according to data from credit bureau Experian:
| Metro Area | Percentage with 800+ |
|---|---|
| San Francisco, CA | 4.0% |
| Minneapolis, MN | 3.8% |
| Boston, MA | 3.7% |
| Salt Lake City, UT | 3.5% |
| Seattle, WA | 3.2% |
| New York, NY | 2.5% |
| Chicago, IL | 2.2% |
| Los Angeles, CA | 2.0% |
| Houston, TX | 1.9% |
| Philadelphia, PA | 1.8% |
Major metro areas in tech-hub regions like San Francisco and Seattle lead the way in exceptional credit scores. Cities with very high costs of living also tend to have more consumers at the top of credit spectrum.
Why Major Cities Have High Scores
Several characteristics of major urban cities likely contribute to higher concentrations of 800+ credit scores:
- High-paying jobs – Lucrative tech and finance careers enable easy payments.
- Education – Urban populations tend to be highly educated overall.
- Credit access – Cities offer more opportunities to obtain credit.
- Investments – Disposable income enables more investing to build wealth.
- Amenities – Social activities promote financial community and literacy.
With their vibrant economies and educated workforces, major metros contain conditions conducive for consumers to achieve exceptional credit.
Why Some Cities Have Lower Scores
On the other hand, lower-cost metropolitan areas tend to have fewer top credit scores for reasons such as:
- Lower incomes – Makes on-time payments more challenging.
- Job volatility – Uneven markets increase financial instability.
- Less education – Results in lower financial literacy.
- Rural outskirts – Surrounding areas have reduced credit access.
- Transient populations – Reduces community connections.
Economic and demographic factors all influence the ability to build and maintain long-term exceptional credit. But smart personal finance habits can make a difference in any location.
Conclusion
Achieving an 800+ credit score is an impressive accomplishment only around 2% of the population attains. These high-achieving consumers exhibit responsible borrowing and payment activity over many years to reach top-tier credit status. While young borrowers rarely have exceptional scores due to limited history, the 65-74 age group peaks at a 5% share in part due to retirement-age financial prudence. Certain prosperous states and major urban cities contain conditions conducive to consumers reaching 800+ scores. But with diligent credit management, maintaining exceptional credit is possible even in more challenging areas through dedication to smart financial habits over time.