What does it take to achieve an 800 FICO score? email and credit card balances for High Achievers

[CuriousAboutCredit]

I recently received an email on Feb 12, 2014 from myfico with the subject line "What does it take to achieve an 800 FICO Score?"

A link inside the body of the email took me to a chart titled "Climb Your Way to Become a FICO Score High Achiever".

The chart indicated that "High Achievers have an average balance of about $8,500 on their credit cards." (emphasis mine) and "Improvers have an average balance of nearly $25,000 on their credit cards." (emphasis mine)

Those numbers seem very high for credit card debt... especially for the High Achiever group!

When I pulled my myfico report in the past, it said:  "Most FICO High Achievers owe less than $600 on revolving accounts such as credit cards and department store cards."  

I was under the impression that the majority of High Achievers have less than $8,500 in total non-mortgage balances.

Is the information in the Feb 12th email I received correct?  Do High Achievers really have an average of $8,500 in credit card balances?

Or, did the people who produced the chart get the two types of debt mixed up?  Did they mean to say "total non-mortgage balances" as opposed to "credit cards"?

Thank you for clarifying.

[user5387]

I don't know the answer.

But several of the keys to an 800 score are: (1) avoid derogatories, (2) low utilization, (3) only apply for credit you really want and need.

[CuriousAboutCredit]

Thank you for the reply.  My best guess is that it is a mix up.

They probably meant to say "non-mortgage balances" instead of "credit cards".

If it's incorrect, I hope myfico sends out a correction.

There is a HUGE difference between High Achievers having an average of $600 in credit card debt, as they have said in the past, and having $8,500 in credit card debt, as they said in that "Climb Your Way" chart.

I'm still curious to know the correct answer...

Thanks again for trying to help me figure it out.

[user5387]

In theory it's possible to have high CC debt and still have low utilization.

But most folks don't have high enough total CLs to make this happen.

And high absolute debt could wreck your DTI, unless you have high income to service the debt.

[CuriousAboutCredit]

Thank you for the reply.

I am under the impression that I need to keep the credit utilization ratio low and keep the total amount of credit card balances low too.  

In the past, I have read both of these statements on my myfico report:

1.  Regarding the utilization ratio:  "For FICO High Achievers, this ratio is 7%, on average."
2.  Regarding total credit card balances:  "Most FICO High Achievers owe less than $600 on revolving accounts such as credit cards and department store cards."

The chart they sent out Feb 12th contradicts that 2nd point above and says that High Achievers carry an average of $8,500 in credit card balances.

Curious to know which one is closer to correct... $600 or $8,500?

Thx again for the reply.

[user5387]

Payment history and utilization are around 2/3 of a score, and thus avoiding derogatories and high utilization are primary keys to achieving high scores.

Beyond that, it's a matter of not wasting inquiries, not getting accounts you don't really need, and various other similar things.

[CuriousAboutCredit]

You make very good points.

Amounts Owed makes up 30% of the score.

The utilization ratio is part of the Amounts Owed category.

The average amount owed on credit card balances is part of the Amounts Owed category too.

I hope they'll clarify... Big difference between $600 and $8,500.

Thanks for the reply.

[PaBill]

I just went from 764-784 on my scores to 806-822 this week. It happened when I dropped my total outstanding balances to $510. (Utilization dropped from 37% to 3%...)

[Hcontreras]

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@user5387 wrote:

I don't know the answer.

But several of the keys to an 800 score are: (1) avoid derogatories, (2) low utilization, (3) only apply for credit you really want and need.

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I don't know the answer to that, but i can tell you that my GF is in the 800's and she has all 3 factors listed above by user6387.......Very long standing accounts (CC, mortgage, auto mix). I honestly don't think she's had even one late payment. Her history is impeccable. I don't know that it necessarily needs to be that impeccable, but hers is and she's in 800's, so she's apparently done something right. Hope that helps. :-)