Having an excellent credit score can save you a lot of money in interest over time. If your score is already in the 700s, you’re in good shape, but you can always take it from good to great.
You probably already know that your credit score is a three-digit number based on the information in your credit report, which includes items like your loan payment history and credit card balances. Multiple companies have models that calculate credit scores, FICO and Vantage Score, for example, which both operate on a scale from 300 to 850.
Generally speaking, a higher credit score can translate to cost savings, perks and more. Your credit score is a key factor considered by lenders, so a better score can help you get more credit at attractive interest rates (which can save you hundreds or even thousands on interest over time). Landlords and employers can also check your credit score as part of their due diligence process. And some of the best reward credit cards are only available to those with the highest scores.
So how high should you aim? Getting a perfect score is extremely difficult; so many credit overachievers strive for a score in the high 700s or 800 plus. That puts you squarely in the highest range for most credit scoring models (Vantage Score considers a score of 780-850 to be Grade A, while FICO deems scores above 800 to be excellent).
If you’re nowhere close, don’t worry there are ways to improve your credit score over time. You can actually reap many of the benefits listed above with a score that’s considered good. But if good doesn’t cut it, read on how to get excellent credit.