What is the benefit of an 800+ credit score?

[ejman]

Like ( I assume) many of the posters at this forum I have an 800+ credit score but I'm not sure what it does (or doesn't do) for me. I never buy anything on credit ( that is, I buy as much as I can on my credit cards and pay the balance at the end of the month). I pay cash for cars since they won't let me pay with my CC without adding a fee. I honestly don't know what good that credit score does for me but I would certainly like to hear from the experts here.

 

[Senator]

Bragging rights. Anything above 740 counts as the same.

You may also get a discount on insurance.

 

[LastOfTheBoomers]

I asked our FP about a declining credit score - he said why would you care - you won't be buying anything on credit ever again.

But I did find that some or most insurance companies run a credit check - but if you are an established customer I don't know if they repeat the check every few years.

 

[mystang52]

About the only benefit I can think of is it would qualify you for a zero % auto loan if you're in market for a new car (and 0% promotion is offered). My 2 cars are 3 and 2 years old, so it's going to be quite a while before I need another car.

 

[RobbieB]

If you have a high credit score you can be assured that your mailbox will always be stuffed full of offers for credit cards.

These offers can be stored in a box and used to light your fireplace in the winter to keep you warm.

 

[Free]

I've saved several hundred dollars a couple of years ago due to incentives offered for financing two new Toyota vehicles. I had planned to pay cash, but by financing got an extra thousand off each car, and the finance contract required the financing to continue at least 4 months. So at the end of that period, the loans were paid in full. We incurred a few hundred in interest, but the net savings was heavily in our favor. Our credit score allowed us to get a better interest rate than we would have otherwise.

This was the first time we'd financed anything in many, many years.

 

[JonnyM]

Similar but different. We have fixed income streams, but don't tend to save large amounts of cash for large purchases. We found good credit allowed us to buy two cars from two dealers on a day back in Jan of this year. Zero down, so completely using other peoples money. No trade in as we kept our previous "big" purchase from 2004.

Agree the fanmail from CC companies is ridiculous. Why would I want double digit percentage cards?

 

[Texas Proud]

One thing that I know it can do is get you approved for a loan pretty darn quick...

Seven or so years ago I went to a furniture store and bought like $5 or $8K worth of stuff.... they had zero interest blah blah blah....

Well, the guy calls the info in to get approval and hangs up... the phone rings in less than a minute... approved... he looked at me and said 'that is the fastest I have ever seen anybody approved'.... tried to sell me some more stuff....


Now, funny thing is that my credit score must have dropped some... you know these CCs put your score down... I have seen it as low as 780ish and as high as 820 something.... but for the life of me I do not know what changed between these two extremes... maybe different companies scores....

 

[gauss]

Perhaps no obvious effect and that is just fine.

Having a low credit score, on the other hand, and society will constantly remind you of that fact.

 

[MBSC]

It's easier to find someone willing to rent you an apartment when you decide to try a different retirement location.

Lower insurance premiums. Also, my second oldest card was discontinued by the issuer and I replaced it with a new card. A few months later I received a letter from my homeowner's insurance that my premium would be increasing at the next renewal due to a change in my credit history.

Based on 2013 data, drivers with median credit-based insurance scores—considered a fair score—paid 24% more for auto insurance than those with excellent credit. And those with poor credit paid a whopping 91% more. For home insurance in a 2014 study, those with a fair score could pay 29% more for their policies, while homeowners with a poor credit score could pay 91% more.

Reference: Save Money With a High Credit Score: Insurance, Student Loans, Credit Cards, Financing

 

[FI by 2024]

I asked our FP about a declining credit score - he said why would you care - you won't be buying anything on credit ever again.

But I did find that some or most insurance companies run a credit check - but if you are an established customer I don't know if they repeat the check every few years.

I don't know whether this is standard, but my insurance company reruns my credit every time it renews. Having good credit gives me a good discount on insurance.

 

[Senator]

It's easier to find someone willing to rent you an apartment when you decide to try a different retirement location.

I use credit score as a go/No-go indicator.

At least you will be able to get into a good apartment. Otherwise, you are stuck living with a bunch of other neighbors with a low credit score...

 

[pb4uski]

I've saved several hundred dollars a couple of years ago due to incentives offered for financing two new Toyota vehicles. I had planned to pay cash, but by financing got an extra thousand off each car, and the finance contract required the financing to continue at least 4 months. So at the end of that period, the loans were paid in full. We incurred a few hundred in interest, but the net savings was heavily in our favor. Our credit score allowed us to get a better interest rate than we would have otherwise.

This was the first time we'd financed anything in many, many years.

+1 .... just closed on new truck yesterday. Took out a loan and will pay off in 4 months and the financing incentive was used to increase the allowance for my trade. Funny thing is that I know the president of the bank and see him regularly and after I pay it off I'll have to thank him for the bank's contribution to the purchase of my truck.

 

[photoguy]

It's easier to find someone willing to rent you an apartment when you decide to try a different retirement location.

+1

I thought it would be a huge pain renting after FIRE with no rental history. But it's been very easy, even with a dog. I can't prove it's due to credit score but I can't see what else it could be.

 

[medved]

Its a good pickup line to meet girls at bars: "Hi, I have a really high credit score; wanna go out with me Friday night?"

On the off chance she's not impressed by your credit score, you could try telling her your SAT score.

 

[Drake3287]

Have to agree with many of the comments. Unless I plan to finance another property, my 850 score doesn't mean a lot other than bragging rights.

I agree with the 0% auto loans though. My last car loan was 0% and the finance manager at the dealership said almost no one will qualify for it. I told my wife to sit back and watch the finance guys face when our credit report comes back. Sure enough the guy couldn't believe it.

Apparently they see very view of these!

 

[FI by 2024]

Its a good pickup line to meet girls at bars: "Hi, I have a really high credit score; wanna go out with me Friday night?"

On the off chance she's not impressed by your credit score, you could try telling her your SAT score.

I had a guy try to pick me up by saying "I'm a good guy, I read. BOOKS!"

You can try combining all three and really impress the ladies...

 

[Markola]

I changed j*bs recently and part of the process at the new place was a background check, which included a credit check. I have a high score so no problem but it still seems a modern evil somehow because, at an employee level, how can a credit score predict job performance? A low score might indicate someone with poor financial skills but it also might surface a highly-committed and willing wage slave whom the company can control more. At the population level, it also seems wrong somehow to use a credit score as a proxy for separating the hirable from the non-hirable. Good people can get into hock for all kinds of reasons. Statistics, I guess.

In a few short years when I FIRE that score won't matter at all to me unless I take up playing the frequent flier points credit card swapping game in my abundant spare time to get cheap travel.

 

[ziggy29]

I have a high score so no problem but it still seems a modern evil somehow because, at an employee level, how can a credit score predict job performance? A low score might indicate someone with poor financial skills but it also might surface a highly-committed and willing wage slave whom the company can control more.

I suspect it's more a matter of worrying about employees getting into serious financial problems which might make them more likely to steal, or make them more susceptible to bribes and blackmail.

 

[nash031]

About the only benefit I can think of is it would qualify you for a zero % auto loan if you're in market for a new car (and 0% promotion is offered). My 2 cars are 3 and 2 years old, so it's going to be quite a while before I need another car.

In a recent (this week) conversation with one dealership, the threshold for 0% was 675.

 

[Drake3287]

Interesting, I can only assume they get lot's of customers with less then that score then!

 

[GravitySucks]

In a recent (this week) conversation with one dealership, the threshold for 0% was 675.

5 years ago I bought a car that had gone through a major model change. (A 2010 in Feb of 2011). The dealer set me up with 0 % interest and $500 cash back on top of a great deal price. I asked how much cash back if I paid cash and was told no cash back. Only got he cash back with the 0% loan. When I asked how he said no one qualifies as you need a minimum 790 FICO.
When he found I qualified he asked why I wouldn't want to buy a nicer car...

Final paid that off this year.

 

[Bamaman]

No matter what I do, I remain at 796 on the FICO score.

My wife is the one with the 820-830 FICO score, and she's the one getting offers of all kinds for loan consolidations and low APR credit cards.

I sometimes question the FICO score factors taken into consideration. My wife doesn't even have a job and hasn't worked for 14 years--no income.

We so goes the Fair Isaacs Credit Organization's credibility.

 

[purplesky]

I check my credit scores on credit karma every week to monitor my credit activity and it is fun to see my credit scores.

I am in the 820 range. A excellent credit score is actually a big deal and I have worked hard to get here.

 

[medved]

I check my credit scores on credit karma every week to monitor my credit activity and it is fun to see my credit scores.

I am in the 820 range. A excellent credit score is actually a big deal and I have worked hard to get here.

Is there anything in particular that you have received as a result of your 820 credit score that you would not have been able to receive with, say, a 750? Or does it just make you feel good to have a high score?

I never check my credit score. I pay my bills on time but I could care less what my credit score is. I guess if I got denied some credit that I wanted, maybe then I would look into it. But that has never happened, and I doubt it will.