In the credit score range of 300 to 850, a score of 700 or higher is typically regarded as good.
In the credit score range of 300 to 850, a score of 700 or higher is typically regarded as good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2022, the average FICO® Score☉ in the U. S. reached 714.
You may be able to get a credit card or loan with better terms and a lower interest rate if you have a high credit score. That said, different lenders use their own criteria for deciding whom to lend to and at what rates. Here are some additional details about what makes a good credit score, what affects credit, and how to raise credit.
Is 818 a Good Credit Score?
Absolutely! An 818 FICO® Score is considered excellent, placing you in a very exclusive group of individuals with near-perfect credit. This score signifies responsible financial behavior and indicates a low risk of defaulting on future debts. As a result, you can expect to receive the most favorable terms and rates from lenders, including:
- Lowest available interest rates on loans and credit cards
- Access to premium rewards credit cards
- Approval for high credit limits
- Favorable terms on mortgages and auto loans
What Does an 818 Credit Score Mean?
Your 818 credit score tells lenders that you’re a highly responsible borrower with a proven track record of managing credit wisely. This score indicates:
- On-time payments: You consistently pay your bills on time, demonstrating reliability and trustworthiness.
- Low credit utilization: You keep your credit card balances low compared to your available credit, showing responsible use of credit.
- Positive credit history: You have a long and positive credit history, demonstrating consistent responsible credit management.
- Limited inquiries: You haven’t applied for too much new credit recently, which can negatively impact your score.
Benefits of an 818 Credit Score:
- Lower interest rates: You’ll qualify for the lowest interest rates on loans and credit cards, saving you money over the long term.
- Access to premium rewards: You can qualify for premium rewards credit cards that offer lucrative cashback, travel points, and other valuable perks.
- Higher credit limits: You’ll likely be approved for higher credit limits, giving you more financial flexibility.
- Favorable terms on mortgages and auto loans: You’ll qualify for the best mortgage and auto loan rates, potentially saving you thousands of dollars over the life of the loan.
How to Maintain an 818 Credit Score:
- Continue paying your bills on time. This is the single most important factor in maintaining a high credit score.
- Keep your credit utilization low. Aim to keep your credit card balances below 30% of your available credit.
- Avoid opening new credit accounts unnecessarily. Every time you apply for new credit, a hard inquiry is placed on your credit report, which can temporarily lower your score.
- Monitor your credit reports regularly. Check your credit reports from all three bureaus (Experian, TransUnion, and Equifax) for errors or fraudulent activity.
- Dispute any errors you find. Contact the credit bureaus to dispute any errors you find on your credit reports.
An 818 FICO® Score is a testament to your excellent credit management and opens doors to the most favorable financial products and services. By continuing to practice responsible credit habits, you can maintain this high score and enjoy its numerous benefits for years to come.
Why Your Credit Score Changed
Numerous factors can affect your credit score, and when new information is added to your credit reports throughout the month, it’s normal for scores to fluctuate.
You may be able to point to a specific event that leads to a score change. For example, a late payment or new collection account will likely lower your credit score. Conversely, paying down a high credit card balance and lowering your utilization rate may increase your score.
But some actions might have an impact on your credit scores that you didnt expect. For example, even though paying off a loan is a good thing in terms of responsible money management, it may result in a lower score. This might be the case because it was the only loan with a low balance or the only open installment account you had on file with your credit report. You might be left with only high-balance loans after repaying the loan, or you might lose your ability to combine revolving and open installment accounts.
Perhaps you decide to stop using your credit cards after paying off the balances. While staying out of debt is a good idea, inactivity on your accounts may result in a lower score. If you want to keep your account active and establish a history of on-time payments, you might want to use a card for a small monthly subscription and then pay off the balance in full each month.
Keep in mind that credit scoring models use complicated calculations to determine a score. Occasionally, you may believe that a single event—like paying off a loan—caused your score to rise or fall, but in reality, it was merely a coincidence. In this case, your score increased because of the lower credit utilization ratio. Furthermore, a single incident does not “worth” a set number of points; rather, the point shift is determined by your complete credit report.
For someone who has never been late before, for example, a new late payment could result in a significant point decline because it could signal a shift in behavior and, consequently, increase credit risk. A person who has previously missed a lot of payments, however, might only lose a few points from a new late payment because it is already assumed that they will miss payments more frequently.
How to Improve Your Credit Scores
To improve your credit scores, focus on the underlying factors that affect your scores. At a high level, the basic steps you need to take are fairly straightforward:
- Make all of your debt payments on time, and at least the minimum amount due. Your credit scores can be negatively impacted by even a single late payment, which can remain on your record for up to seven years. Get in touch with your creditors as soon as you suspect you might miss a payment to see if they will work with you or provide hardship options.
- Keep your credit card balances low. When comparing the credit limit and current balance of revolving accounts, like credit cards, your credit utilization rate plays a significant role in the scoring process. Lower credit utilization can improve your credit scores. The overall utilization rate of people with excellent credit is typically in the single digits.
- Open accounts that will be reported to the credit bureaus. Make sure that any credit accounts you open will be added to your credit report if you don’t have many credit accounts. These could be revolving accounts like credit cards and credit lines, or installment accounts like student, auto, home, or personal loans.
- Only apply for credit when you need it. A hard inquiry resulting from applying for a new account may slightly lower your credit scores. While the effect is usually negligible, applying for a lot of different credit cards or loans in a short amount of time may result in a bigger credit score decline.
Other factors can also impact your scores. For example, increasing the average age of your accounts could help your scores. However, thats often a matter of waiting rather than taking action.
Checking your credit scores might also give you insight into what you can do to improve them. For instance, you can look at how you’re doing in each of the credit score categories when you check your free Experian FICO® Score 8.
Additionally, you’ll receive a summary of your score profile that shows you what’s improving and detracting from your score.
TOP 5 Benefits Of A High Credit Score (Most People Don’t Know About!)
FAQ
How many people have a credit score of 818?
How common is an 800 credit score?
How many people have 850 credit score?
Does it matter if your credit score is 800 or 850?
Is 818 a good credit score?
Credit Rating: 818 is an excellent credit score, which is even better than a good score. You can even classify an 818 credit score as being perfect. Borrowing Options: All borrowing options are available, and the terms are likely to be very attractive. For example, you should be able to qualify for the best credit cards and the best personal loans.
Can you get a car loan with a 818 credit score?
You should have no issues getting an auto loan with an 818 score. Again, you should qualify for the best interest rates they have to offer. However, remember that other factors are taken into account, so even with an excellent credit score, it’s not a guarantee that you’ll be approved for a loan.
What is a 818 credit utilization ratio?
Your credit utilization ratio is the amount of credit you’re using compared to your available credit limit. Keeping your credit utilization low is crucial in achieving an 818 credit score. Ideally, your credit utilization should be below 30%. For instance, if your credit limit is $10,000, try not to use more than $3,000.
What credit score do you need for a personal loan?
Most personal loan lenders will approve you for a loan with an 818 credit score. In fact, you will likely qualify for the best loan rates available. However, keep in mind that your credit score is just one factor that lenders consider when deciding whether to approve your loan application.