What’s the Highest Credit Score?
The highest credit achieved varies by scoring model. Primary credit scoring models a lender uses to judge creditworthiness include FICO and VantageScore®, which top out at 850. Lenders and other financial institutions rely on credit scores to get an idea regarding overall credit health. A credit score serves as a three-digit number and is important to give a quick understanding of how likely you are repaying your debts on time.
Most credit scoring systems rely on a scale ranging from 300 to 850. Some credit scoring models going up to 900 or 950 include industry-specific scores used by certain institutions. An 850 credit score might sound appealing, but it isn’t necessary. A credit score in the upper 700s or low 800s will justify you as the responsible credit user.
Ranges for one of the common scoring models according to FICO are as follows:
- Exceptional: 800-850
- Very good: 740-799
- Good: 670-739
- Fair: 580-669
- Poor: 300-579
Benefits of High Credit Score
Several reasons to work toward a high credit score, including saving money, are as follows:
- lower rates on car loans:
A good credit score lets you secure a loan with the best possible terms. People who possess the highest credit score qualify for an interest rate of 4.2% on a new car.
- credit cards with great rewards:
You will get the best credit cards in terms of rewards as well as benefits that require good to exceptional credit scores.
- Qualifying for the lowest rate on a mortgage:
Mortgage serves as a loan through which you’ll get the lowest interest rate possible. A small percentage increase can cost tens of thousands of dollars over the life of a loan.
- Negotiating with lower interest rates on credit cards:
When you completely pay off your credit card balance each month, at that point, credit card APR is irrelevant. A great credit score helps negotiations with the lender to lower interest rates. A lower interest rate saves you a lot of money.
- better insurance rates:
When you’re shopping around for homeowners or auto insurance rates, a great credit score helps you qualify for a lower monthly premium.
- Refinancing your loans to save money:
Improved credit score lets you refinance it at a lower rate and save money.
What’s the method for Getting an 800 Credit Score and Above?
You always don’t require a perfect credit score, but when you wish to achieve an 800 credit score or higher, ensure that you’re looking forward to the long credit history and no derogatory marks on a credit report. For improvement, pay attention to credit reports and scores. Get the idea regarding disputing inaccuracies on your credit reports. Pay on time as the On-time payments are very valuable. Keeping credit card balances low is one of the best ways. Avoidance of the new hard inquiries will be highly beneficial for getting good long-term results.
Negative information on credit reports is highly detrimental. So, always carefully plan out to get rid of these details.
Above all, it’s worth noting that achieving a great credit score takes time. Achieving above an 800 credit score overnight isn’t possible. You will have to make sure to hold a lot of patience as you’re working toward that goal. The FICO 8 scoring model and the VantageScore 3.0 are based on the 300-850 scale. Following the right credit habits alongside building the credit following the outlined guidelines lets you improve your scores.