When it comes to credit scores, most people focus on improving their numbers—whether it’s paying down debt, disputing errors, or maintaining a long credit history. But have you ever wondered if there’s such a thing as too high of a credit score?
While a high credit score is generally a good thing, there are nuances to consider. In this deep dive, we’ll explore credit score ranges, what they mean, and whether chasing an 850 FICO score is worth the effort—or if it’s just financial overkill.
Credit scores typically fall into one of five categories, depending on the scoring model (FICO and VantageScore being the most common). Here’s a quick breakdown:
A score in this range makes it difficult to qualify for loans or credit cards. If approved, you’ll likely face high interest rates and unfavorable terms.
Better than poor, but still subprime. You may qualify for some credit, but lenders will see you as a higher risk.
This is where most lenders consider you a "safe" borrower. You’ll get decent rates, though not the best available.
Now we’re talking. Borrowers in this range enjoy competitive interest rates and better approval odds.
The elite tier. You’ll get the best rates, highest credit limits, and most favorable terms.
But here’s the question: Is there any real benefit to pushing past 800?
An 850 FICO score is often seen as the holy grail of credit—but in reality, it’s more of a vanity metric than a financial necessity. Here’s why:
Once you hit the mid-700s, lenders already view you as a top-tier borrower. The difference between a 760 and an 850 is negligible in terms of loan approvals and interest rates.
You won’t get lower mortgage rates, better credit cards, or exclusive financial deals just because you max out the scale. The benefits plateau.
Maintaining an 850 often requires near-perfect credit behavior:
- Keeping credit utilization below 5%
- Never missing a payment (ever)
- Having a long, diverse credit history
- Avoiding too many hard inquiries
For most people, the stress of micromanaging credit to hit 850 outweighs the (minimal) financial upside.
Believe it or not, there are rare cases where an extremely high score could work against you.
Credit card companies make money from interest and fees. If you have an 850, they might assume you’ll never carry a balance—meaning you’re not a lucrative customer. Some issuers could deny you premium cards if they think you won’t generate revenue.
If you’re hyper-focused on maintaining an 850, you might avoid opening new credit lines (even if they’d benefit you) or paying off loans early (to keep a mix of credit types). This could limit your financial agility.
People with top-tier scores sometimes neglect monitoring their credit because they assume everything is perfect. But errors, fraud, or sudden changes (like a missed payment) can still happen.
Credit scores aren’t just about loans—they’re increasingly tied to other aspects of life:
Landlords often check credit scores. While a high score helps, anything above 700 is usually sufficient.
Some employers review credit reports (not scores) for financial responsibility. An 850 won’t give you an edge over a 780.
In many states, insurers use credit-based insurance scores to set rates. Again, the difference between 800 and 850 is marginal.
Instead of obsessing over an 850, aim for the 750-800 range. Here’s why:
- You’ll qualify for the best rates.
- You won’t stress over minor fluctuations.
- You can focus on financial habits that actually matter—like saving, investing, and debt management.
At the end of the day, credit scores are just one piece of your financial health. A perfect score won’t make you rich, but smart money habits will.
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Author: Credit Boost
Link: https://creditboost.github.io/blog/credit-score-ranges-can-you-have-too-high-of-a-score-2618.htm
Source: Credit Boost
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