Secrets of FICO Score High Achievers

According to recent data released by myFico.com, More than 50 million people (that’s 25% of the population!) have the bragging rights of being a FICO “High Achiever” (a FICO^® Score of 785 and above) which can save them thousands of dollars over the lifetime of a loan.

While people with stellar credit score aren’t perfect nor debt-free, they do share one thing in common: They are all financially responsible and manage their accounts responsibly.

Here are a few lessons that should be learned from these high achievers:

Low Credit Utilization

High Fico score achievers rarely max out their credit cards or keep high balances on them. In fact, they use an average of only 7% of their revolving credit limit. On average, they:

• Have 7 credit card accounts listed on their credit report, both open & closed.
• Have 4 accounts (credit card & loans) with a balance.
• 2/3^rd has a total balance (credit cards & loans, ex mortgage) below $8,500.
• Have a long-established credit history, and seldom open new accounts.

96% of the people with credit score above 785 do not have a single missed or late payment on their credit report.

• Less than 1% have a past due account listed on their credit report
• Less than 1% have a collection account listed on their credit report
• Only 1 in 9,000 have experienced a tax lien or bankruptcy

Long Credit History

Almost all FICO score high achievers have a well-established credit history:

• The oldest credit account was opened an average of 25 years ago.
• The most recent credit account listed on their report averages 28 month old
• The average credit account is 11 yrs old.

The most important lesson to be learned from these high achievers is that consistent responsible financial behavior do pays off!

Even people with past credit problems can rebuild their credit and score high. All it takes is determination and responsibility.