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Nobody needs a perfect credit score. In fact, there’s no real benefit to having a FICO® Score above 760 or so (other than bragging rights). With that score, you can get the best credit cards, the lowest mortgage rates, and more.

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That said, there’s no reason not to shoot for a perfect FICO® Score of 850. Here are two reasons why:

1. You earn a perfect credit score by managing debt well.
2. If your FICO® Score is 850, it can take a serious hit and still be in the “excellent” range.

Only 1.54% of Americans had a FICO® Score of 850 as of mid-2023, according to Experian. Here are three things that could help you join that elite group.

1. Always pay your bills on time

The average American with a perfect credit score has never made a late credit card or loan payment. Most Americans have missed one or two payments — and this is the fastest way to tank your credit score.

Keep in mind that lenders and credit bureaus have different definitions of “late.” If your credit card or mortgage payment is a couple of days behind schedule, then you’ll probably get hit with a late fee, but there won’t be any effect on your credit score.

But if your payment is 30 days or more late, then your account may be reported as “delinquent” to the credit bureaus. This can cause your credit score to drop by double digits — or even 100 points or more.

If you want a perfect credit score, then rule No. 1 is to pay your bills on time, all the time.

2. Keep your credit utilization as low as possible

Your credit utilization is the amount you owe in revolving debt (namely credit card debt) divided by your credit limit. For example, if you have a total of $10,000 in available credit, and you’re carrying a balance of $5,000, then your credit utilization is 50%.

You want your credit utilization to be low, because it means you’re not spending a lot of money that you can’t repay — and this will raise your credit score. The credit score elite keep their credit utilization low in two ways.

First, they have low credit card balances. They pay their bills in full, or almost in full, every month.

Second, they have higher credit limits than the average American. With an excellent credit score, you can get credit cards with high spending limits. On top of that, those with perfect credit scores have more credit cards than most people — an average of 5.8 cards versus 3.9 among all Americans.

Put the two together, and Americans with perfect FICO® Scores only use 4% of their available credit on average.

You don’t need a credit utilization ratio of 4% to achieve an excellent credit score (or even a perfect one). But it’s a good target to shoot for — and 0% is even better.

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3. Build and maintain a long credit history

The length of your credit history accounts for 15% of your FICO® Score. The longer you’ve had open credit accounts, the better.

This is part of the reason why older Americans tend to have higher credit scores. Baby boomers claim 59% of the perfect credit scores in the U.S., partly because they’ve had decades to establish their credit histories.

If you haven’t started building your credit history, the best time to start is now. You can open a secured credit card with no credit whatsoever. Because your initial deposit doubles as your credit limit, there’s no risk that you’ll spend more than you can pay back, and all your payments will be reported to the credit bureaus.

If you already have credit cards, then the best way to maintain a long credit history is to keep your oldest accounts open — even if you don’t want the cards anymore. Just use them a couple times a year to make sure they’re not canceled due to inactivity.

Aim high — but don’t obsess over perfection

Most Americans are actually doing all right when it comes to their credit scores, with an average FICO® Score of 715 — firmly in “good” territory. If you can achieve a score of 760-plus, then you’ve “made it.” Your score is considered excellent, and you’ll enjoy the same perks as someone with an 850.

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