Forget Perfect Credit. Here’s Why You Don’t Need It

Most of us aren’t perfect. Some of my main flaws are my tendency to obsess over minor details, my inability to get organized with meal planning and grocery shopping, and my overwhelming lack of talent for all things craft-related. But in the context of my credit score, I was once perfect for a period. 

In my 20s, I went through a credit check when renting an apartment, and I was actually surprised to hear that my credit score was a perfect 850. The reason was most likely that I’d never missed a bill, paid my credit cards off in full every month, and had a long-standing credit account thanks to my parents adding me as an authorized user to a card of theirs I never swiped, but had access to in an emergency.

It’s been a long time since my credit score was perfect, though. That one apartment-related credit check was probably the last time I had a score of 850.

These days, an estimated 1.54% of consumers have perfect credit — or at least they did as of the third quarter of 2023, according to Experian. So I don’t feel too bad that I’m not part of that small percentage. 

But the main reason I don’t feel bad about not having perfect credit is that I don’t need it. And guess what? You don’t need perfect credit, either.

It doesn’t pay to chase a perfect credit score

If your credit score could use some work, I’d encourage you to try to boost it and get it as close to the 800 mark as you can. But once you reach that point, you can stop stressing over your credit score.

Experian says that any credit score of 800 or above is exceptional. What this means is that once your credit score reaches 800, it almost doesn’t matter whether it’s an 807, 823, or 850. Either way, you’re very likely to get approved to borrow money unless there’s a specific reason that makes a lender or credit card issuer question your ability to pay.

For example, you can have a credit score of 840 and be denied a mortgage if your income isn’t high enough to support the loan amount you need or want. In that case, you’re being denied because of your earnings — not your credit. 

Similarly, if a credit card company sees that you’ve applied for several new cards over the past four or five months, it may deny your application not because it doesn’t trust you to pay your bills on time, but because it might assume that you won’t spend much on its card. That’s not what credit card issuers want. 

But for the most part, a credit score of 800 or above puts you in great shape to borrow, and at competitive rates. It doesn’t make sense to chase perfect credit when your energy can be spent elsewhere. 

How to boost your credit score

Let’s be clear about one thing. You’re not doomed to be rejected for a loan or credit card if your credit score is below 800. A score of 780 or 750 might put you in a great position to borrow, too. 

But if you have a credit score in the 500s, you might have a hard time. And you’re not guaranteed to have success with a score in the 600s, either. Some credit card offers, for example, are reserved for higher scores. So it could pay to take some steps to boost your credit. 

You can do that by:

• Paying all bills on time
• Reducing your credit card balances
• Increasing your limits on your credit cards — but don’t increase your credit card spending
• Getting added as an authorized user to a long-standing credit card account
• Checking your credit report and correcting errors

Raising your credit score from 620 to 820 could do you a lot of good. But don’t obsess over that 850. It’s just not worth it, and once your credit score reaches a certain point, it’s not necessary.

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