Skip to main content
Advertiser Disclosure
We do receive compensation from some partners whose offers appear on this page. We have not reviewed all available products or offers. Compensation may impact the order in which offers appear on page, but our editorial opinions and ratings are not influenced by compensation.

The Ascent Logo The Ascent Logo - Blue circle with an A in it and the ascent a motley fool company to the right of that

  • Credit Cards
  • Banking
  • Brokerages
  • Loans
  • Mortgages
  • Knowledge
  • Latest Picks
  • Search Icon Click here to search

Credit Cards

Top Picks
  • Best of January 2021
  • Cash Back
  • Balance Transfer
  • Travel
  • 0% APR
  • Rewards
  • Bad Credit
Knowledge
  • Beginners Guide to Credit Cards
  • How to Rebuild Your Credit
  • Maximize Your Credit Card Rewards
  • Learn More About Credit Cards
Credit Card Tools
  • Compare Cards
Looking for a new credit card?

Explore the best credit cards in every category as of January 2021.

Get started!

Banking

Top Picks
  • Best Savings Accounts
  • Best Bank Accounts
  • Best Money Market Accounts
  • Best CDs
  • Best Checking Account Bonuses
Knowledge
  • Beginners Guide to Banking
  • Everything You Need to Know About Savings
  • Money Market Accounts Made Easy
  • Learn More About Banking
Looking for a place to park your cash?

Check out our top picks of the best online savings accounts for January 2021.

Get Started!

Brokerages

Top Picks
  • Best Brokers of January 2021
  • Best Online Brokers for Beginners
  • Best Options Brokers
  • Best IRA Accounts
  • Best Roth IRA Accounts
  • Best Robo Advisors
Knowledge
  • How to Open a Brokerage Account
  • Beginner's Guide to Brokerages
  • Learn More About Brokerage
Just getting started?

Explore our picks of the best brokerage accounts for beginners for January 2021.

Get Started!

Loans

Top Picks
  • Best Loans of January 2021
  • Best Personal Loans for Bad Credit
  • Best Loans for Debt Consolidation
  • Best Low-Interest Personal Loans
  • Best Personal Loans for Good Credit
  • Best Personal Loans for Fair Credit
Knowledge
  • Personal Loans Made Easy
  • Debt Consolidation Guide
  • How to Pay Off Debt
  • Learn More About Loans
Thinking about taking out a loan?

Before you apply for a personal loan, here's what you need to know.

Get Started!

Mortgages

Top Picks
  • Best Mortgage Lenders of January 2021
  • Best Mortgage Lenders for Poor Credit
  • Best Refinance Lenders
  • Best VA Mortgage Lenders
Knowledge
  • First Time Homebuyers Guide
  • Home Loans Made Easy
  • The Complete Guide to Refinancing
  • How to Get a Mortgage with Bad Credit
  • Learn More About Mortgages
Tools & Calculators
  • Mortgage Calculator
Compare Rates
  • Today's Mortgage Rates
  • Refinance Rates
  • 15-Year Mortgage Rates
  • 20-Year Mortgage Rates
  • 30-Year Mortgage Rates
  • Jumbo Mortgage Rates
  • VA Loan Rates
  • 5/1 ARM Rates
  • 7/1 ARM Rates
  • FHA Mortgage Rates

Knowledge

Knowledge Section
  • All Articles
  • Credit Card Articles
  • Banking Articles
  • Brokerage Articles
  • Personal Loan Articles
  • Mortgage Articles
  • Personal Finance Articles
Recent Articles
  • U.S. Citizens With Undocumented Spouses Can Get Stimulus Checks

    Personal Finance

    U.S. Citizens With Undocumented Spouses Can Get Stimulus Checks
  • Don't Accidentally Throw Away Your Stimulus Check

    Personal Finance

    Don't Accidentally Throw Away Your Stimulus Check
  • Stimulus Check Update: $1,400 Checks Now on the Table

    Personal Finance

    Stimulus Check Update: $1,400 Checks Now on the Table
  • Weekly Mortgage News Roundup for Jan. 15, 2021

    Mortgages

    Weekly Mortgage News Roundup for Jan. 15, 2021
  • The Ascent
  • Knowledge
  • Credit Cards

5 Reasons to Get Your Credit Score Above 800

by Matt Frankel, CFP | Aug. 11, 2019

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

Chalkboard that says Credit Score with decreasing levels of stars and a hand checking the box next to 5 stars

Image source: Getty Images

FICO® Scores range from 300 to 850, with higher scores being better. The national average is around 700, and anything above that level is generally considered to be good credit. Anything over a 760 or so will qualify you for the best interest rates on most loans and will allow you to get any credit card or revolving line of credit you want -- provided that your income and other qualifications are strong as well.

So if a 760 will get you pretty much anything you need, it may seem odd that I'm talking about reasons to break the 800 barrier. However, there's a good reason why I'm encouraging you to aim a bit higher. While a score above 800 isn't necessary to get the best credit terms, it's nice to have some cushion.

In other words, if you have a score of 800, you can open a new account, apply for new credit, or charge a major purchase without fear of dropping out of the top tier. All of these things can be expected to cause a mild drop in your credit score, so it's nice to have a margin of safety to absorb minor temporary credit dings.

Save thousands on your next home

Perhaps the most significant reason, at least from a dollars-and-cents standpoint, is that a top-notch credit score can save you thousands of dollars on your mortgage.

The reason is that while mortgage rates are low in general these days, the best rates are reserved for borrowers with top-tier credit scores. And you might be surprised at the savings that can result from a seemingly small difference in mortgage rates. While these rates will certainly change over time, here's a snapshot of the U.S. average 30-year fixed mortgage rates by credit score tier, and what it could mean to you as a borrower, as of this writing:

FICO® Score Range Average APR Monthly Payment on $250,000 Mortgage Total Interest Paid
760-850 3.512% $1,124 $154,743
700-759 3.734% $1,156 $165,987
680-699 3.911% $1,181 $175,069
660-679 4.125% $1,212 $186,185
640-659 4.555% $1,275 $208,963
620-639 5.101% $1,358 $238,710

Data source: myFICO.com 

As you can see, a top-tier borrower would save more than $11,000 over the life of a 30-year mortgage as compared with someone in just the next tier down. If your credit is currently in a lower tier, the money you save by building a top-notch credit score would be even more.

Get any credit card you want

An excellent credit score can allow you to get any credit card you want. For example, if you see an excellent balance transfer offer, you should be able to take advantage. The same can be said if you see a great sign-up bonus or a travel credit card with fantastic perks.

While credit card issuers generally don't publish their minimum FICO® Score standards, reports indicate that there is no credit card issuer that requires more than a 750 or so. An 800 or more puts you well within the realm of elite applicants that credit issuers would love to do business with.

Get the best possible car loan

Just like with mortgages, car loan interest rates are dependent on the borrower's credit score. In fact, there's even more of a discrepancy between the rates given to customers with top-notch credit and everyone else.

The average APR given on a 60-month new car loan is currently 4.72% to a buyer with a FICO® Score above 720. For someone in the next tier (690-719), the average APR rises to 6.044%. To illustrate the potential difference, a borrower with poor credit can expect to pay a sky-high 17.147% APR for the same exact car loan. 

Save money on your insurance

At first glance, insurance may not seem like a credit-related product. After all, when you buy car insurance or homeowner's insurance, you typically pay your premium in advance. In other words, no credit is being extended.

However, insurance companies generally view credit scores as a sign of overall personal responsibility. For instance, someone with an 800 FICO® Score is less likely to cause a car accident, accidentally set their house on fire, etc. Whether you agree with this logic or not, the reality is that many insurance companies use customers' credit scores as part of the process of setting the premium. So a higher credit score can save you significant money on your insurance costs.

Boost your chances of landing your dream job

As a final reason to maximize your credit score, it's important to point out that many employers will run a credit check on applicants before extending a job offer. This is a controversial use of credit score to say the least, but the logic is the same as for insurance companies -- better credit statistically correlates with higher personal responsibility and trustworthiness.

How to get there

The most important step in maximizing your FICO® Score is to know how the scoring method works. By understanding the information that makes up your FICO® Score and how it is used, you can take appropriate steps to lift your score over time. With some smart strategies, you might be surprised how quickly your score can increase.

Our credit card expert uses the card we reveal below, and it could earn you $1,148 (seriously)

As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases into 2022, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

About the Author

Matt Frankel, CFP
Matt Frankel, CFP icon-button-linkedin-2x icon-button-twitter-2x

Matt is a Certified Financial Planner® and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice, and in 2017 he received the SABEW Best in Business Award.

Share This Page
Blue Facebook Icon Share this website with Facebook
Blue Twitter Icon Share this website with Twitter
Blue LinkedIn Icon Share this website with LinkedIn
Blue Mail Icon Share this website by email

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

Related Articles

Credit cards on a desk image for Best Credit Cards for 2021

Best Credit Cards for 2021

Interest spelled out on a calculator image for Compare Credit Cards Side by Side

Compare Credit Cards Side by Side

Man holding cash image for How Do Cash Back Credit Cards Work?

How Do Cash Back Credit Cards Work?

Cyber security and computer screen image for How to Protect Yourself from Credit Card Fraud

How to Protect Yourself from Credit Card Fraud

Featured Articles

Best Credit Cards for 2021

Compare Credit Cards Side by Side

How Do Cash Back Credit Cards Work?

How to Protect Yourself from Credit Card Fraud


We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

The Ascent Logo

The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

btn_facebook-yellow btn_twitter-yellow btn_instagram-yellow

Copyright © 2018 - 2021 The Ascent. All rights reserved.

About The Ascent
About Us Contact Us Newsroom How We Make Money Editorial Integrity Ratings Methodology
Legal
Terms of Use Privacy Policy Accessibility Policy Terms and Conditions Copyright, Trademark and Patent Information
Learn
Credit Cards Banking Brokerage Loans Recent Articles

By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

Back to The Motley Fool