Recently I decided to take a look at my credit score and was more than pleasantly surprised. I figured I had good credit but never expected to see that I was so close to 800. I always thought that highest you could score was 800 but it is actually 900, with the majority of scores between. It breaks out something like this*:
800+ – The Golden Elite (less than 5% of the population and anyone with some credit card debt that they do not pay off each month will not get into this range)
750 – 800 – Tier 1 = best loan rates; lower than prime rates
660-700 = Tier 2 = usually get prime rates
620-660 = Tier 3 = usually gets subprime rates
620 or below = Not a good place to be but you can get out of it (I did!)
700 is the middle of the range – 50% of Americans fall above this and 50% fall below it.
For many consumers there’s a pride factor that comes with having an 800+ credit score. In reality though, an 830 credit score is really no better than a 760 credit score. Once a borrower has achieved a 760+ credit score, lenders consider the borrower to be an “A” borrower and worthy of the best available loan rates and borrowing privileges.