If your credit score is over 800, that is a good job! It shows lenders that you are an exceptional borrower and puts you well above the average score of other consumers.
At the point when you have an 850 credit score, you are equipped for better offers and quicker approvals when you apply for new credit. Here is what you really want to do to make your FICO credit score 850.
Basics of Credit Score
First, a small refreshment about credit scores. You all know what a credit score is: a three-digit number that gives information about your credit risk, based on your credit data.
Credit scores help you determine how likely you are to get the best loans, based on your ability to pay them back.
The most common credit score is the FICO score, which is calculated using the major credit data from your credit reports.
It helps creditors to determine whether to give you credit, decide the terms they offer, or the interest rate you pay. Having an 850 credit score can benefit you in many ways since this is basically the highest credit score achievable and a sign of near-flawless credit management. You can easily get a loan, rent an apartment, or lower your insurance rate.
What is a Perfect Credit Score?
If you have an 850 credit score, then you have the highest possible credit score in both the FICO and the VantageScore credit scoring systems.
Actually, the FICO scoring system will consider all the credit scores above 800 to be exceptional. When you try to get a perfect credit score, you will get all the advantages associated with perfect credit if you are having an 800-850 credit score.
Once your credit score comes to 800, there is something that you can do. Why don’t you aim for higher credit scores, by keeping your utilization low and waiting for your credit history to improve?
In general, if you have a perfect credit score you can achieve your financial and personal goals. It might be the difference between qualifying or being denied for an important loan, (like a home or car loan). It also impacts your interest payments or your fees if your loan gets approved.
Benefits of having 850 Credit Score
When you have an 850 credit score, you become eligible for all today’s best credit cards, including premium credit cards with multiple benefits like travel credits and numerous redemption options.
Some of the other benefits include:
- You can now qualify for lower interest rates and higher credit limits.
- You are very likely to be approved when you apply for new credit.
- You will get multiple rewards on your credit.
Qualifying for lower interest rates and higher credit limits
With an 850 credit score, your history reflects that you repay your debts; in short, that you have a lot of money. So lenders will offer you better deals. You can see the change in your lenders when you are getting a mortgage loan or trying to score a better interest rate on your credit card.
In case you have an existing loan, you might be able to refinance at a better rate now that you have a high credit score.
Now coming to credit cards, when compared with loans, they are different. You might have to ask to get a better deal if you have had the card for a while. Call your existing credit issuers if you have an 850 credit score or if you haven’t taken a close look at your current terms. You can ask them to drop the interest rate or to increase your credit line based on your credit score.
Approved for new credits
Your credit score indicates your creditworthiness and how you are able to repay money that you borrow. If you have a higher credit score, then lenders will consider you to be a less risky person. In that case, you are increasingly more likely to be approved for a line of credit or loan, big credit, big loans. 850 is no joke.
Getting better rewards for credit cards
While you may have been using the same credit card for a long time and it can be good in the length of credit history, you might be missing out on some valuable benefits.
With an 850 credit score, you are qualifying for the best rewards. 850 is the highest score, and 800 is very close. An easy way to find a better deal is to ask your credit card issuer if you qualify for a different card with better rewards and benefits.
If so, your card issuer will be explaining the process to get switched over to a new card.
An 850 credit score will also help you get:
- An unsecured credit card with a reasonable interest rate, or even a balance-transfer card
- A desirable car loan
- A mortgage with a favorable interest rate.
- Opening new credit to cover expenses in a crisis if the emergency fund is depleted or runs out.
Want to get to 850? Check Your Credit Scores
You can check your credit scores from the three credit bureaus, namely Experian, Equifax, and TransUnion. Reviewing what your credit scores mean and what affects them can help you when you are getting ready to apply for new credit.
Ways to check your credit score
There are a few ways to check your credit score:
- Free credit scoring websites
- Check with your credit card issuer
- Non-profit credit counselor
In addition, to check your credit score, it is almost imperative that you regularly check your credit reports to ensure that the information is complete and accurate.
Credit Score Factors
When you reach an 850 credit score, there are certain factors that determine your future scores like:
- Payment history
- Due amounts
- Credit history
- Credit mix
- New credit
There are some types of accounts that determine your credit scores, like:
If you understand what factor affects your credit score, it helps you to plan in an effective way to build your credit.
What is Worth of an 850 Credit Score?
If you are having an 850 credit score and facing any difficulty in removing negative marks from your credit report, then one of the best credit repairs like TheCreditpros might be worth considering. “We are committed to customer service and we strive to please all of our clients”.
They also help you to identify damaging inaccuracies on your credit and get them removed.
Whether or not achieving a perfect credit score is worthwhile depends on your goals for your credit history. For many people, having an 850 credit score will be fine; you will still obtain virtually all of the benefits of perfect credit, such as access to credit cards meant for those with great credit.
If you want to have more than 850 credit score range, then you are like a person who accepts credit score challenges. In such cases, try keeping your credit utilization ratio is low so that you can boost your credit.
If you are going to apply for a mortgage or another major loan then this 850 credit score is worth and you can save your money too.
If you are putting more effort to reach more than 850 credit scores, then there are no additional benefits to making your score higher than that.
If your credit is already exceptional and is worried it won’t stay that way, then one of the best credit monitoring services could provide some needed peace of mind.
Those with perfect credit scores tend to demonstrate their ability to reduce debt while having many credit accounts, as well as other positive factors that affect their credit score. You can do it too.
Frequently Asked Questions
- What is a good credit score to buy a car?
If your credit score is above 700 you are qualified for a car loan. If your credit score is below 700, then get ready to answer the negative items on your credit report.
- What is a good credit score to buy a house?
If your credit score is higher than 600, then you don’t need flawless credit to buy a house. The lenders reward higher credit scores with lower interest rates so that it makes them risk-free.