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As Good As It Gets

Once your credit score hits a certain mark, there’s no real reason to go higher

It’s easy to obsess over your credit score because it impacts so many areas of your life. However, try to keep a level head about it. If your score is high, try to relax a bit. Experts agree that once your score reaches a certain point, trying to improve it won’t do you any good.

While there’s no exact consensus on the specific score that cannot be improved on, the three-digits you’ll hear most often are 750. As CNBC reports, typically, if you have a stellar score of 750, you are golden. You’re already getting the best mortgage and insurance rates — among other things — available. There’s not much more you can gain from nudging it up to a “perfect” score of 800 and above. That’s good news for many Americans, as earlier this year, the average FICO score hit 695 and the average Vantage Score hit 673.

If you’re not sure what your score is, that’s a problem. You can’t improve a score if you don’t know where you’re starting from. You should be checking your score and credit reports from each of three major bureaus once per year (it’s free!), you may even be able to check your score through your financial institution. Make sure you dispute anything incorrect and from there, improving your score is a fairly straightforward process. Pay your bills on time, as payment history is one of the biggest factors that impact scores. Another big part of your score is credit use. Keep your credit utilization ratio (how much you have charged on cards compared to your total credit limit) low. Keep and use a few credit cards for long periods of time in order to build a solid credit history. Do these simple steps and you’ll likely find your score will soaring past 750. And if it does, pat yourself on the back and take a deep breath. You’ve earned it.

Chris O'Shea

Chris O'Shea