Americans With a Perfect 850 Credit Score Have an Average $285K in Debt. Here's Why.

On the FICO scale, having an 850 credit score is as perfect as you can get. But few Americans have ever reached that perfection. In fact, only 1.54% of U.S. consumers had a FICO® Score of 850 in the third quarter of 2023, according to Experian data. That's about 3.57 million Americans, or a little more than the population of Utah.

As you might expect, achieving perfect credit involves paying your bills in full and on time before the due date. But, contrary to what you might think, having perfect credit doesn't necessarily mean you have no debt. In fact, when you look at the credit profile of a 850 FICO® Score, you'll see that the average debt obligation is $285,579.

That doesn't necessarily mean the average 850 credit score has borrowed more than they can pay back. Instead, it shows something that lenders like to see -- a great mix of credit. And if you, too, want to join the 850 club, here's why a variety of credit types can help you get there.

The average 850 credit score has a variety of credit

Credit mix is one of the five factors that make up a FICO® Score. It's important because it shows how well you can manage different kinds of debt. Revolving credit (like credit cards) demonstrate that you can pay debt on time from month to month, while installment loans (like personal loans and mortgages) prove you can commit to obligations long term.

When we break down the debt obligations of an average American with perfect credit, we'll see a great mix of credit.

What's more, the average person with an 850 credit score has 5.8 credit cards and 3.8 retail credit cards (store credit cards), or roughly 10 credit cards. While that might seem like a lot, they also have a low credit utilization of 4%. Since credit utilization makes up 30% of your FICO® Score, this surely contributes to the perfect score.

Don't miss that last part. Although consumers with an 850 credit score have debt and several credit cards, they're using a small percentage of their total available credit. In contrast, the average consumer without a perfect score has a credit utilization of 29%, roughly seven credit cards, and almost $300,000 in total debt. They're using more of their available credit, while also carrying more debt.

Truth be told, a perfect credit score doesn't give you any special treatment. If anything, it just gives you bragging rights and an ego boost. In fact, most people can get the full benefits of a high credit score by maintaining a score of 760. These benefits include meeting requirements for the best rewards or cash back credit cards. As long as you're paying your credit cards and loans in full and on time, your credit will be in good shape, even if it's not perfect.