Reaching a perfect 850 FICO® Score is often seen as the pinnacle of creditworthiness, but is it truly necessary? While an 850 score signifies an ultra-low-risk borrower with a history of responsible credit use, anything above 800 is already considered excellent and sufficient for securing the best rewards credit cards and lowest mortgage rates. The perks of having an 850 score include qualifying for top-tier loan offers, enjoying higher credit limits, and possessing greater negotiating power with lenders. However, the difference between an 850 and a score of 820 or even 750 is minimal when it comes to obtaining favorable credit terms. Instead of fixating on achieving a perfect score, it's more beneficial to focus on maintaining a high score through practices like timely bill payments, low credit utilization, and regular credit report checks. Ultimately, consistent good credit habits will lead to a score you can be proud of over time.
Read the full article here.