Do we really need an 800 credit score?

Did you know that in the eyes of most creditors there really is no difference between a 740 credit score and a 800 credit score? It’s a myth that your credit score needs to be in the upper 700’s or even 800’s. You will find that this ideology is nothing more than an ego booster.

Now, I am not saying there is anything wrong with a 780 credit score or even an 800 credit score. We are getting pounded currently by experts that a credit score is crucial to the best rates and terms. While this is very true, there comes a point where we can go over board with this matter.

Most of my investors or even my bank starts dinging your interest rate when your score drops below a 740. Let’s assume you have a 780 credit score and another guy has a 740 credit score. Who do you think will get the best rates? With most lenders it does not matter…. Your risk is the same…

I don’t believe there is anything wrong with shooting for the stars, but just remember that your rates and terms will not be any better.

If you have discovered that your credit score is 740 or above, you have arrived. This means that you are considered part of the elite in the eyes of most lenders. Most creditors will not have an issue lending you money as long as you qualify.

FICO recently reported that 25.5% of consumers have credit scores 599 or below, that is roughly 43 million people. If you have found yourself in this group of Americans, then its time to get to work. If you are part of the elite, don’t sweat it, just maintain your good credit standing by practicing the following.

Maintain good credit score practices with the following:

1. Making your payments on time.

2. Don’t charge up your credit cards.

3. Don’t co-sign for loans.

4. Don’t close out good credit on your credit report.

5. Don’t apply for too much credit at once.

Author: Mike Clover

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