Here's What Happens When Your Credit Score Reaches a Perfect 850

Congratulations -- you've just reached credit score perfection. Now what?

Going by the commonly-used FICO® Score system, 850 is the highest credit score possible. That means lenders see you as a very low-risk borrower with a long track record of paying debts on time and using credit responsibly.

But the truth is, you don't get a parade when you reach a perfect 850 credit score. There's no secret cool club, either. In fact, any credit score of 800 or higher is typically enough to get the best credit cards, loan rates, and more.

Here's what an 850 credit score does (and doesn't) get you.

Perks of reaching an "excellent" credit score

Yes, a higher score never hurts. But lenders give their best offers to anyone with an "excellent" score of 800 or more. That means:

• You'll get higher credit limits: Credit card issuers offer higher limits to borrowers with excellent credit. This increases your available credit, which can help you cover big purchases and keeps your credit utilization ratio low. That's an important factor in maintaining a high score.
• You'll get top loan offers: You're also likely to qualify for the lowest interest rates on mortgages, auto loans, and personal loans.
• You'll have more leverage: When you have an excellent credit score, lenders want your business. That means you may be able to negotiate even better terms, like a lower APR and waived fees.

Want to see what an excellent credit score can get you? See our list of the best rewards credit cards available to see how you can start earning.

Does getting a perfect credit score matter?

As you've probably guessed: Not really.

An 850 score looks great on paper, but there's not a ton of practical differences between an 850 and, say, an 820. Even earning a "very good" credit score (740+) will be enough to qualify for most top credit cards and loan offers.

What's more, your credit score will likely fluctuate as card balances change, or if you get a hard inquiry on your credit report. So don't obsess over perfection.

How to get an excellent credit score

An 850 credit score isn't a must. But a few strong financial habits can easily get you to the "very good" or "excellent" range:

• Pay on time every month. This is the biggest factor in your score.
• Keep your credit utilization low. Ideally, use less than 10% of your credit limit.
• Limit new credit applications. Too many hard inquiries can ding your score.
• Keep your old accounts open. A longer credit history helps boost your average account age.
• Regularly check your credit reports. Spot and fix errors that could hurt your score.

Looking to raise your credit score? See our credit card beginner's guide to learn how you can work your way toward that 850.