| All content presented here and elsewhere is solely intended for informational purposes only. The reader is required to seek professional counsel before beginning any legal or financial endeavor. |
A good credit score is essential for anyone applying for loans, credit cards, or other financial products. But what exactly is an excellent credit score? While different lenders and credit bureaus use different credit scoring models, understanding the factors contributing to an excellent credit score can help you improve your score and make more informed financial decisions, such as when applying for personal loans. In this article, we'll look at what makes a credit score excellent, how credit scores are calculated, and how you can improve and maintain a high credit score.
Key Points:
- An excellent credit score is 800 or higher
- An exceptional credit score above 800 can secure your ability to take out a new loan and lock in a lower interest rate
- You can leverage your excellent credit to make money through credit card perks and other bonuses
- An excellent credit rating can mean the difference of over 1% off a mortgage interest rate
What Can You Do With Excellent Credit?
If you have an excellent credit score, you will look better in the eyes of the lender, giving you opportunities to take advantage of some of the best financial products. But aside from that, you’ll have many advantages over those with lower scores. Here are some great money moves or ways you can leverage excellent credit to make money.
- Contact your existing credit card companies to negotiate a lower rate
- Trade up for a better credit card with more perks than the one you got when you first signed up
- Ask for and likely get an increased credit limit, making it easier for you to manage your debt-to-limit ratio
- Refinance your mortgage if market rates are in your favor
- Refinance your auto loan for a shorter term at a lower interest rate (or one or the other)
- Benefit from open credit lines with low balances - you’ll continue to build your credit history
Check out this chart below that shows the average interest rate by credit level for a 30-year fixed-rate mortgage of $300,000.
| FICO Score | National average mortgage APR |
| 620 to 639 | 7.489% |
| 640 - 659 | 6.943% |
| 660 to 679 | 6.513% |
| 680 to 699 | 6.299% |
| 700 to 759 | 6.122% |
| 760 to 850 | 5.900% |
Your excellent credit score can get you a lower APR compared to lower credit scores too. Check out this chart below that shows the typical APR by credit score.
| FICO Score | Personal loan interest rate (high end) |
| 629 and under | 32% |
| 630 to 689 | 19.9% |
| 690 to 719 | 15.5% |
| 720 and higher | 12.5% |
FAQ
This app literally changed my like. It provides a great experience. I absolutely love it!