2 Reasons a Perfect Credit Score Is Overrated

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Getting a perfect credit score isn’t impossible. As of the third quarter of 2023, 1.54% of U.S. consumers had a perfect score of 850, according to Experian. But what this tells us is that with enough effort, you can potentially join the elite few who have perfect credit scores.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. That said, there’s no reason to push yourself to achieve perfect credit if your score is already in great shape. And if you’re wondering what’s considered great shape, Experian says a score of 800 or above is exceptional. We’ll use that as our benchmark.With that in mind, here’s why you should be happy with a score of 800 or above — and why you shouldn’t chase that 850.1. You won’t necessarily increase your chances of getting approved for a loanThe higher your credit score, the more likely you are to get approved for a loan. But a credit score of 850 won’t necessarily increase your chances of approval more so than an 800 or an 810 or an 825.Once your credit score reaches the 800 mark, you’re highly likely to get approved to borrow money when you want to unless there’s another factor getting in your way. For example, say mortgage lenders in your area want an income of $100,000 to qualify for the size of loan you’d need.If you only earn $65,000 a year, you may be denied. But in that case, it’s not due to your credit score. Also, in that situation, an 850 credit score probably won’t convince a lender to budge on its income requirement to the tune of $35,000.2. You won’t necessarily get a better rate on a loanHaving outstanding credit could set you up for a lower interest rate on the next loan you sign, whether it’s an auto loan, mortgage, or personal loan. But again, you won’t necessarily get a better rate with a perfect credit score than with a score of 800 to 849.Now, you will most likely get a better interest rate on a loan with a score of 800 or more compared to a 600. So if your credit score is nowhere close to perfect, then it pays to try to boost it. You can do so by paying bills on time, reducing balances on your credit cards, and reviewing your credit report regularly for errors (which, thankfully, you can do every week for free if you so choose).But there’s a huge gap between a credit score around 600 vs. a score around 800. And if you’ve managed to get to around the 800 mark, then there’s no need to stress about going from there to a perfect score.How to maintain an already-strong credit scoreAlthough perfect credit is overrated, great credit is not. Having great credit puts you in a position to not only save money on a loan, but also qualify for some of the top credit card offers out there. And if you’re not sure what those entail, check out this list of the best credit cards to learn more.But if you’re sitting on a credit score of around 800 or higher, your goal should largely be to stay where you are instead of striving for perfection. And the steps discussed earlier to boost a credit score are the same ones to take to maintain an already-great credit score — pay your bills on time, keep outstanding credit card balances low, and ensure your credit report doesn’t contain false information that could work against you.Remember, it’s common for credit scores to fluctuate from month to month. So even if you do manage to achieve that perfect 850 at some point, it may be short-lived.Something as innocent as submitting a new credit card application could cause your score to drop by a few points, stripping you of perfect credit. Instead of pushing for an 850, a better use of your time and energy is to take the above steps to keep an already outstanding credit score as intact as possible.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Getting a perfect credit score isn’t impossible. As of the third quarter of 2023, 1.54% of U.S. consumers had a perfect score of 850, according to Experian. But what this tells us is that with enough effort, you can potentially join the elite few who have perfect credit scores.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

That said, there’s no reason to push yourself to achieve perfect credit if your score is already in great shape. And if you’re wondering what’s considered great shape, Experian says a score of 800 or above is exceptional. We’ll use that as our benchmark.

With that in mind, here’s why you should be happy with a score of 800 or above — and why you shouldn’t chase that 850.

1. You won’t necessarily increase your chances of getting approved for a loan

The higher your credit score, the more likely you are to get approved for a loan. But a credit score of 850 won’t necessarily increase your chances of approval more so than an 800 or an 810 or an 825.

Once your credit score reaches the 800 mark, you’re highly likely to get approved to borrow money when you want to unless there’s another factor getting in your way. For example, say mortgage lenders in your area want an income of $100,000 to qualify for the size of loan you’d need.

If you only earn $65,000 a year, you may be denied. But in that case, it’s not due to your credit score. Also, in that situation, an 850 credit score probably won’t convince a lender to budge on its income requirement to the tune of $35,000.

2. You won’t necessarily get a better rate on a loan

Having outstanding credit could set you up for a lower interest rate on the next loan you sign, whether it’s an auto loan, mortgage, or personal loan. But again, you won’t necessarily get a better rate with a perfect credit score than with a score of 800 to 849.

Now, you will most likely get a better interest rate on a loan with a score of 800 or more compared to a 600. So if your credit score is nowhere close to perfect, then it pays to try to boost it. You can do so by paying bills on time, reducing balances on your credit cards, and reviewing your credit report regularly for errors (which, thankfully, you can do every week for free if you so choose).

But there’s a huge gap between a credit score around 600 vs. a score around 800. And if you’ve managed to get to around the 800 mark, then there’s no need to stress about going from there to a perfect score.

How to maintain an already-strong credit score

Although perfect credit is overrated, great credit is not. Having great credit puts you in a position to not only save money on a loan, but also qualify for some of the top credit card offers out there. And if you’re not sure what those entail, check out this list of the best credit cards to learn more.

But if you’re sitting on a credit score of around 800 or higher, your goal should largely be to stay where you are instead of striving for perfection. And the steps discussed earlier to boost a credit score are the same ones to take to maintain an already-great credit score — pay your bills on time, keep outstanding credit card balances low, and ensure your credit report doesn’t contain false information that could work against you.

Remember, it’s common for credit scores to fluctuate from month to month. So even if you do manage to achieve that perfect 850 at some point, it may be short-lived.

Something as innocent as submitting a new credit card application could cause your score to drop by a few points, stripping you of perfect credit. Instead of pushing for an 850, a better use of your time and energy is to take the above steps to keep an already outstanding credit score as intact as possible.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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