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While having a low credit score definitely affects your ability to qualify for loans at reasonable rates, the upper range of your credit score doesn’t really matter that much. In fact, trying to increase your score beyond a certain range is a waste of time if you are trying to get the best interest rates.

Anything above a 760 credit score doesn’t really matter

It’s easy to get obsessed with your credit score, but you only really use it when applying for credit, like when you want to finance a new home or vehicle. That doesn’t mean credit scores don’t matter, of course, as a lower interest rate can mean saving thousands of dollars in interest payments alone. But it’s important to keep your credit score in perspective, especially if you already have good credit habits and pay your debts on time.

In fact, a FICO score above 760 doesn’t really matter to lenders, as anything beyond that will already qualify you for the lowest rate possible, what lenders call your “prime rate.” As financial expert John Ulzheimer explains to CNBC, “The best published interest rates for auto loans are over 720 and for mortgages, over 760. As such, I always tell people to aim for 760 or higher. That way, they are safe for all types of loans and cards. “

How to increase your score to 760

People with excellent credit scores share the same habits. These include:

  • Make punctual and constant payments every monthSince avoiding late payments represents 35% of your total credit score. A single late payment can lower your credit score by 100 points for many months.
  • Have a good credit mix: Your credit mix determines 10% of your credit score, so multiple open credit accounts: credit cards, facilityment loans, and mortgages: they can help improve your score.
  • Using only a fraction of your credit each month: Superprime borrowers only use 5.7% of your available credit. The less you use, the better, as credit utilization represents 30% of your credit score.
  • Have very old lines of credit: Your credit history (how long you’ve had lines of credit open) represents 15% of your credit score.

For more practical tips on how to improve your credit score, check out this Lifehacker post.



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