Congratulations — you’ve just reached credit score perfection. Now what?
In the widely recognized FICO® Score system, an 850 is the pinnacle of credit scores. Achieving this score indicates that lenders view you as a very low-risk borrower, with a solid history of timely debt payments and responsible credit usage.
However, reaching a perfect 850 doesn’t come with fanfare or exclusive memberships. In reality, any credit score of 800 or above is generally sufficient to unlock the best credit cards, loan rates, and more.
So, what does an 850 credit score actually get you (and what doesn’t it)?
Perks of Reaching an “Excellent” Credit Score
While a higher score is always beneficial, lenders typically reserve their best offers for those with an “excellent” score of 800 or more. Here’s what you can expect:
- Higher Credit Limits: Credit card issuers are more likely to offer higher limits to borrowers with excellent credit. This not only increases your available credit but also helps maintain a low credit utilization ratio, a key factor in sustaining a high score.
- Top Loan Offers: You’ll likely qualify for the lowest interest rates on mortgages, auto loans, and personal loans.
- More Leverage: With an excellent credit score, lenders are eager for your business. This gives you the power to negotiate better terms, such as lower APRs and waived fees.
Curious about what an excellent credit score can offer? Check out our list of the best rewards credit cards available to start earning.
Does Getting a Perfect Credit Score Matter?
As you might have guessed, not really.
While an 850 score looks impressive, the practical differences between an 850 and, say, an 820 are minimal. Even a “very good” credit score (740+) is typically sufficient to qualify for most top credit cards and loan offers.
Moreover, your credit score may fluctuate due to changes in card balances or hard inquiries on your credit report. Therefore, it’s best not to obsess over achieving perfection.
How to Achieve an Excellent Credit Score
While an 850 credit score isn’t necessary, adopting a few strong financial habits can easily elevate you to the “very good” or “excellent” range:
- Pay on Time Every Month: This is the most significant factor in your score.
- Keep Your Credit Utilization Low: Aim to use less than 10% of your credit limit.
- Limit New Credit Applications: Too many hard inquiries can negatively impact your score.
- Keep Your Old Accounts Open: A longer credit history can help boost your average account age.
- Regularly Check Your Credit Reports: Identify and correct errors that could harm your score.
Looking to improve your credit score? Explore our credit card beginner’s guide to learn how to work your way toward that 850.
