Here's What Happens When Your Credit Score Reaches 850

So you're chasing that perfect 850 credit score? Respect. That's like getting a straight-A report card in adulting.

But let's clear something up: once you're in the "excellent" credit range (which usually starts around ~800) the perks don't change all that much.

Whether you're at 805, 840 (me), or the almighty 850, most lenders are gonna treat you the same. You've already proven you're a low-risk borrower, and you'll likely qualify for the best stuff out there.

So what's the big deal about having an 850?

You might get a slightly better flex

Let's be honest -- an 850 means bragging rights. You can screenshot it, send it to your mom, maybe even make it your lock screen for a week.

But in terms of actual financial perks, not much changes once you're above 800. You'll get the highest consideration for pretty much anything (assuming your income and debt situation checks out), and you'll qualify for the fanciest credit cards, best mortgage rates, and loan terms.

Lenders mostly care about "ranges"

No lender is gonna say, "Ooh sorry, you're at 840 -- we only give our lowest rate to people with 850s." That's not how it works. In fact, most credit score ranges are bundled into tiers.

There are also several different scoring models out there. FICO is one of the most common, and here's how its score ranges break down:

• 300 – 579: Poor
• 580 – 669: Fair
• 670 – 739: Good
• 740 – 799: Very Good
• 800 – 850: Excellent

Once you're in that 800+ zone, you're not getting penalized for not being perfect. You're already at the top.

Most people never get there (and that's totally fine)

According to Experian data cited by Motley Fool Money, only about 1.76% of Americans have a perfect 850 FICO® Score. But don't let that mess with your head. It's not some secret club with better credit cards or interest rates.

In fact, I think chasing a perfect score can sometimes distract people from bigger goals. It's a better use of time to focus on building wealth, paying down debt, or just enjoying life a little more.

If your score is already in the "good" to "excellent" range, you're in a great position to qualify for some of the top travel credit cards out there. Check out our favorite picks here for earning points, perks, and upgrades on your next trip.

If your score isn't great, it's worth fixing

For anyone in the lower credit score ranges (and specifically for folks below 670) it's pretty important to work on improving your score.

A higher score doesn't just help with loan approvals. It affects way more than you might think.

We're talking lower car insurance rates, easier apartment approvals, even job background checks in some cases. Here are a few things to work on:

• Paying your bills on time. Payment history is the biggest factor in making up your credit score.
• Keeping your credit utilization low. Try to use less than 30% of your available credit (honestly, I recommend trying to keep it under 10% if you can). Asking for a credit limit increase, applying for a new card, or paying your balance off weekly can help.
• Checking your credit reports for errors. You can pull a free one each year from Experian, TransUnion, and Equifax at Annualcreditreport.com.

Even small bumps in your score can save you serious money on interest over time. So yeah, that effort is totally worth it.

Final thoughts: Don't stress the 850

My score has been in the low 800s for a while now, and life is good. I still haven't been offered a golden credit card made of diamonds, but I'll survive. The truth is, there's no magical bonus for hitting 850.

So if you're already in the excellent range, congrats. You're already winning.

And if you're not there yet, don't sweat it. Just keep stacking those good habits. Your score will rise over time, and more importantly, your financial life will get easier.

Curious what kind of credit card you could qualify for right now? Check out our top-rated rewards cards, perfect for people with good to excellent credit. These picks offer generous cash back, points, and perks that can actually add up to something meaningful.