Don’t you wish you had a perfect credit score? Wouldn’t it be great to bask in all the perks, benefits, and low interest rates that come showering down on you when you reach that mythical 850? Of course it would! But there’s good news: you actually don’t need perfect credit to enjoy those perks and benefits.
Rather, you just need to make sure that you have good credit. All the perks that come with a perfect credit score actually start showing up right around 760.
Let’s discuss the way lending organizations look at your credit score, and what you can do to make sure that you enjoy all the best perks without stressing over a perfect credit score.
Perfect Credit: A Real Carrot on a Stick
Try as you might, it may seem impossible to actually achieve that perfect 850 credit score. In fact, it might actually be impossible.
A high-ranking official at FICO, the organization that helps determine the risk involved in consumer lending, has actually said that he’s never seen a perfect score of 850.
Besides, a perfect score may not actually matter. There are endless tips, tricks, and strategies that you can employ in an effort at boosting your credit score. For the most part, they’re not wasting your time. Having good credit is a great thing, but relentless pursuing perfection might be taking up a bit more of your time than it needs to.
The fact of the matter is that FICO and other organizations that determine credit eligibility and the risk factor presented by a particular consumer don’t even see credit scores to the number. Rather, they view credit scores in ranges. Guess where the top tier begins?
You got it! 760.
Work Smart. Not Hard.
When it comes to playing the credit game, it’s better to hit your 760 mark and then take it easy.
When you get to 760, you’ll start enjoying the best benefits and perks that come with a perfect credit score, even though you don’t have one. This is because, as mentioned, all FICO sees is that your score is situated in the top-most range. And besides, that mythical 850 score might not even be a possibility.
What will you enjoy with that score of 760 or above? Perks like improved rates on loans, financing, and credit cards are among the benefits that come along with a credit score of 760 or above.
Of course, this means you should prevent your credit score from dropping below 760. Beyond that, though, it’s largely unnecessary for anyone to chase that mythical unicorn that is the 850 credit score.
As Lifehacker puts it:
“…the people with the best credit scores are the ones who view credit as a tool they have control over, not a force they have to combat.”
Do you have any tips for keeping your credit score right where you want it? Let us know in the comments.