What is a perfect credit score number?

Credit scores are actually based on an analytical scoring methodology developed by a company called Fair Isaac Corp. (FICO). The methodology measures, mathematically, the likelihood of loan repayment for individual consumers. The higher a person’s score the greater the likelihood of repayment. In a sense there is no such thing as a “perfect” score because the scores only relate to a ratio of good loans to bad loans, as follows: 

FICO Score:                                                                  Good loans to bad loans:

<620                                                                                                8 to 1

620 – 659                                                                                      26 to 1

660 – 679                                                                                      38 to 1

680 – 699                                                                                      55 to 1

700 – 719                                                                                    123 to 1

720 – 759                                                                                    323 to 1

760 – 799                                                                                    597 to 1

800>                                                                                          1292 to 1

As you can see, even at the highest scores (800 and over) there is still an anticipation of a bad loan for every 1292 loans. The average score is approximately 700. Approximately twenty percent of the population scores below 620. Less than two percent of the population scores above 800.  Of course FICO models are affected by market economies and are subject to change.

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