Your credit score is far from a random number. Its a snapshot of how risky or trustworthy you are as a borrower.
Lenders assume less risk when they grant you a loan or approve your credit card application if that number is higher. The lower that number, the more risk they bear.
Because of this, borrowers with better credit scores typically have an easier time getting approved for credit cards and loans as well as better interest rates. And so its a good idea to get your credit score as high as possible.
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Credit scores range from a low of 300 to a high of 850. And so once you reach the 850 mark, theres nowhere upward to go, because youve achieved perfect credit.
At that point, your borrowing options are looking pretty good. How hard should you push yourself to reach 850, though, if your score is lower?
A credit score of 850 is the holy grail of financial responsibility, so hold onto your hats, people, because we’re about to delve deeply into the world of perfect credit scores!
If you’re lucky enough to have reached this credit score nirvana, you’re probably wondering what magical doors it unlocks. Well, buckle up, buttercup, because we’re about to spill the tea on all the amazing things you can do with a credit score of 850.
But first, let’s address the elephant in the room:
Is a credit score of 850 truly “perfect”?
Technically, no. The maximum credit score that can be obtained is 850, but a score of 800 or higher is regarded as exceptional, and the advantages remain largely unchanged. You are therefore a member of the elite credit club whether your score is an 800 or an 850.
Now, let’s get down to business. What can you do with this golden ticket of a credit score?
1, Secure the best interest rates:
With a credit score of 850, you’re basically a lender’s dream. They will do everything in their power to give you the best possible interest rates on mortgages, credit cards, and loans. This implies that you’ll save a ton of money over the course of your loans, giving you more money for other enjoyable activities (like that fantastic trip you’ve been eyeing).
2. Qualify for premium credit cards:
Say hello to the exclusive world of premium credit cards, with their lucrative rewards programs travel perks and concierge services. With your stellar credit score, you’ll be welcomed with open arms to these cards, unlocking a world of travel points, cash back, and other benefits that will make your wallet sing.
3. Get approved for any loan you want:
Having a credit score of 850 will make it easy for you to be approved for any loan you want, be it a mortgage to purchase your ideal home, a personal loan to pay off debt, or a car loan to improve your vehicle. Lenders will practically throw money at you because they will be so confident in your ability to repay (well, maybe not literally, but you get the idea).
4. Lower your insurance premiums:
Did you know that your credit score can also affect your insurance premiums? That’s right, people with higher credit scores often pay lower rates on their car insurance and other insurance policies. So, not only will you save money on loans and credit cards, but you’ll also save on insurance, making your wallet even happier.
5. Boost your chances of landing a job:
Believe it or not, some employers now check credit scores as part of the hiring process. A high credit score can show potential employers that you’re responsible and financially stable, giving you an edge over other candidates.
6. Negotiate better deals:
With a credit score of 850, you’ll have the confidence to negotiate better deals on everything from your cable bill to your cell phone plan. Businesses know that you’re a low-risk customer, so they’ll be more willing to work with you to get a better price.
7. Sleep soundly at night:
Knowing that you have a perfect credit score can give you peace of mind. You’ll know that you’re in a great financial position and that you’re well-prepared for whatever life throws your way.
So, there you have it, folks. A credit score of 850 is a powerful tool that can open up a world of opportunities and save you a ton of money. If you’re not there yet, don’t despair. With a little effort, you can reach this credit score nirvana and enjoy all the benefits that come with it.
Additional Resources:
- WalletHub: What an 850 Credit Score Means: Benefits, Stats & Tips
- The Ascent: Here’s What Happens When Your Credit Score Reaches 850
Frequently Asked Questions:
- What is a good credit score?
A good credit score is generally considered to be between 670 and 739.
- What is an excellent credit score?
An excellent credit score is considered to be 800 or above.
- How can I improve my credit score?
There are many things you can do to improve your credit score, such as paying your bills on time, keeping your credit utilization low, and disputing any errors on your credit report.
- What are the benefits of having a good credit score?
There are many benefits to having a good credit score, such as qualifying for lower interest rates on loans, getting approved for credit cards with better rewards, and paying lower insurance premiums.
A number that’s hard to attain
Experian reports that as of late 2021, 1. 31% of consumer credit scores were perfect. So clearly, if your score is not at an 850, youre in the majority.
You also dont necessarily have to stress about your credit score not being perfect. You’re usually in a strong position to be approved for a loan or credit card, and at a great rate, once your score reaches the upper 700s. Furthermore, once your credit score exceeds 800, it really doesn’t matter how it looks in specific.
In other words, suppose you are applying for a mortgage and have an 830 credit score, while a potential borrower has an 850 credit score. It’s likely that you will both obtain the best interest rate your lender can offer you in addition to being approved for a loan. Therefore, having imperfect credit is really not something to worry about as long as your credit score is high. Getting to 850 wont necessarily change things for you if your credit is already excellent.
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- A credit score of 850 is considered perfect.
- Most customers don’t have flawless credit, so you shouldn’t necessarily pursue it.
Your credit score is far from a random number. Its a snapshot of how risky or trustworthy you are as a borrower.
Lenders assume less risk when they grant you a loan or approve your credit card application if that number is higher. The lower that number, the more risk they bear.
Because of this, borrowers with better credit scores typically have an easier time getting approved for credit cards and loans as well as better interest rates. And so its a good idea to get your credit score as high as possible.
Featured offer: save money while you pay off debt with one of these top-rated balance transfer credit cards
Credit scores range from a low of 300 to a high of 850. And so once you reach the 850 mark, theres nowhere upward to go, because youve achieved perfect credit.
At that point, your borrowing options are looking pretty good. How hard should you push yourself to reach 850, though, if your score is lower?