Do People With 850 Credit Scores Pay Less for Almost Everything? Here's the Truth

If you've ever checked your credit score and felt a twinge of envy toward the "perfect 850" crowd, you aren't alone. We're taught to chase that number like a high score in a video game. But does hitting the ceiling actually change your life, or is it just a very impressive financial trophy?

It's mostly a trophy. While an 850 score is an incredible goal to strive for, a credit score of around 760 unlocks just about all the same benefits.

The "plateau effect": Why 760 is often "perfect enough"

One of the biggest secrets in lending is the plateau. For most banks, a score of 740 or 760 is the "VIP line." Once you're in, you get the best rates.

• Mortgage match: A borrower with an 850 score and one with a 780 score will almost always receive the exact same interest rate on a 30-year fixed loan.
• The buffer benefit: The real value of an 850 isn't a better rate; it's the insurance policy. If an 850-scorer misses one payment, they might drop to 790 and still be "elite." If a 740-scorer does the same, they might slip into a higher-interest tier.

Where the 850 score wins big

While the difference between 780 and 850 is marginal, the difference between "Fair" (670) and "Exceptional" (800+) is massive. Here is where the "Perfects" save the most:

1. Mortgage interest (the $100,000 difference)

On a $400,000 home loan, the interest gap between a good score and an exceptional one can be over 1.5%. Over 30 years, that adds up to nearly $100,000 in savings on the same house.

2. Auto insurance premiums

In most states, insurers use credit-based insurance scores. Statistically, people with 850 scores file fewer claims. As a result, they can pay 20% to 50% less for car insurance than those with poor credit.

3. Utility and rental deposits

Landlords and utility companies often waive security deposits entirely for those with top-tier credit. This keeps more of your cash in your pocket, or hopefully in a high-yield account, rather than sitting interest-free in someone else's escrow.

If you're looking for a place to put those savings to work, check out today's best high-yield savings accounts currently paying around 10x the national average APY.

The verdict: Do they pay less for almost everything?

No, they don't. An 850 credit score is a savvy goal to have, but once you have excellent credit, the number doesn't matter much. One of the biggest perks of having excellent credit is access to the most valuable credit cards on the market.

I mean cards that offer hundreds of dollars in bonuses, free travel, exclusive access, featured discounts, and more. Click here to see our list of the best credit cards to have right now.