Credit Score: 3 Benefits of an 850 Credit Score 


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Good credit score is worth bragging about. If there is a sign of financial prudence and discipline, it is that. Many people struggle with achieving good credit scores. And, to reach 850 is not a walk in the park. 

A paltry 1.2% of Americans have managed to achieve a perfect credit score of 850. So, why should you be striving to be part of this group? Read on to uncover the benefits.  

Understanding Credit Scores 

When you walk into a lending institution for a loan, there are some things they will look at. One of them is your credit score. In its simplest element, it determines how creditworthy you are. 

Think about it this way. Would you lend money to friends who lack financial discipline? Every time you give them cash, you are never sure you will get it back. Their past history shows they never make payments on time, or if at all. 

The credit score provides a system of checking how good you are with money. Pay attention to, and keep a keen eye on your credit reports. You can get a copy from the credit reference bureaus. 

Do note, your repayment history may be perfect. But an error in the report can affect your credit score. Top-rated credit repair companies can help with monitoring and fixing such mistakes.  

Why You Should Strive for a Credit Score of 850  

Let’s look at some benefits of an excellent credit score.  

  1.  Low-Interest Rates and Higher Credit Limits on Loans 

The FICO score ranges from 300 to 850. If you fall on the lower spectrum, it means you are not creditworthy. This is not to say you can’t get loans. But, they will cost you more in terms of interest. 

The lender imposes higher rates as a way of protecting themselves. They will recoup part of their cash that way. A credit score of 850 is the highest anyone can achieve.

Lenders will have no problem giving you cash. But, other factors have a role in getting approvals. Your debt portfolio and income are some of them.  

Goods scores will qualify you for low-interest rates. The lenders will also be more willing to give higher limits. And, you can always try to negotiate, if you are not happy with the terms on offer. 

And, credit card companies will throw in some fantastic rewards as well. Any score above 670 is good. Anything below 579 is very poor and needs urgent improvement.  

Here is one point to note. A credit score of 700 and above, will give you the same benefits as someone who has 850. The trick is to ensure the score never goes lower than that.  

  1. Easier Approvals for Jobs or Apartments

Do you know a poor credit score can make you miss out on some jobs? And, the same applies to apartments. 

A landlord can check your credit scores during the screening process. They want to know whether you can keep up with rent payments. A poor score is indicative of an inability to keep up.  

Some job positions require someone with good financial habits. Imagine hiring people with poor credit scores to run the finance department. How do you expect them to manage your money if they can’t manage theirs? 

Or, hiring a procurement manager with poor scores. What assurance do you have that they will not ask suppliers for kickbacks? 

Are we saying people with poor credit scores are worthy of suspicion? The answer is absolutely not. We would not take such an arrogant, judgmental stance.

 But, the business must do all it can to protect itself against unnecessary risk. That is why running credit checks for some positions has become industry practice. 

  1. Better Insurance and Other Rates 

Underwriters may use the credit report to determine coverage and premium rates. They can decline to renew coverage if your score falls. This applies to car insurance and even home insurance. Even if they don’t stop covering you, they may charge higher premiums.  

And it does not end there. Try getting something as simple as a cell phone. The service providers will need an upfront deposit as security. Others may only offer pay-as-you-go plans.  

The same applies to other utilities. Service providers may insist on a security deposit before offering services.  

How to Get an 850 Credit Score

There are steps you can take to get a perfect credit score. We have already talked about credit repair services above.  

But, there is more you can do to get an excellent credit score. These include:-

  • Keeping up with repayments. Your payment history accounts for up to 35% of your scores. 
  • Watch your credit utilization. It should never exceed 30%. 
  • Avoid taking on loans you cannot afford
  • Be prudent about credit card usage. 
  • Strive for a good credit mix. Multiple credit accounts that combine revolving credit can improve your scores by up to 10%. Please note, we are not saying you should start applying for loans with abundance. Remember, you must be able to keep up with payments. 
  • Your credit history matters. Do not, for instance, close old accounts. Yes, even that unused credit card can positively impact your credit score. 
  • Avoid applying for credit as much as you can. Every application comes with a hard inquiry from the lenders. Such inquiries will cause your credit score to drop.  

Do note, getting a perfect credit score is possible. But, as we stated, the trick is to keep it there. Many factors can cause the score to fluctuate. Let’s say you pay off the full amount on a loan. That in itself is a good move. But, it will affect your credit mix and your credit score.  

Achieving a perfect credit score also doesn’t mean you avoid debt. The secret lies in how you manage it. And, it goes back to the point of keeping up with repayments.  

Final Thoughts

Holders of excellent credit scores have bragging rights. It takes financial discipline to achieve and keep the score. The benefits are many including higher loan limits and lower interest rates. 

Chances of getting some jobs or even apartments become easier. And, you will feel the impact when applying for insurance or utilities.  

Keep a close watch on your credit report. Credit repair companies can help with the monitoring. They will also fix any errors on the report. Finally, please, use some of the tips we have shared to improve your credit scores. 

Raushan Kumar
A Cook, Software analyst & Blogger.


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