By Joel O’leary

Copyright fool

Big news for me this week… I checked my credit score and it’s now sitting at 840! That means I’m just 10 points away from hitting the elusive perfect 850.

Only about 1.5% of Americans ever see that magical number, so naturally, I’m kind of curious what happens when you get there.

But honestly, I have a feeling it’ll be… a little underwhelming. Other than bragging rights, I already enjoy pretty much every perk that comes with an excellent score.

So does chasing 850 actually matter?

What an 850 credit score really means

An 850 is the peak of the FICO® Score mountain. It tells lenders that you’re an ultra-low-risk borrower who’s been paying bills on time, using credit responsibly, and keeping balances low for a long time.

But here’s a little-known secret in the personal finance world: you don’t actually need an 850 to unlock the best stuff.

Most lenders treat anything in the 800+ range the same. In other words, if you’re already at 810, 820, or 840 like me, you’re in the same VIP club.

Plus, FICO isn’t the only game in town. VantageScore is another popular credit scoring model. And since each bureau runs the math a bit differently, your score can shift depending on where you check it.

Perks of being in the “excellent” zone

You might not get a trophy or a parade, but having excellent credit still pays off in a few real ways:

Bigger credit limits: Card issuers are more generous with borrowers they trust. A higher limit not only gives you flexibility for big purchases, but also keeps your utilization ratio low (which helps your score).Top loan offers: Mortgages, auto loans, personal loans, etc. You’ll qualify for the lowest interest rates available. Even if you don’t hit 850, an 800+ score usually gets you the exact same deal.Negotiating power: Lenders want your business. Actually any place that runs your credit with an application (like landlords or property management companies when you apply to lease) likes to see a high score. That can give you leverage to ask for better terms, like a lower APR or waived fees.

And let’s be real — the bragging rights of a high score don’t hurt either.

The benefits are nearly identical for anyone past 800 and in the “excellent” zone. Lenders usually don’t care about a few points difference. Even crossing into the “very good” tier (740+) is often enough to access most top offers.

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A perfect credit score doesn’t make you untouchable

Even with a perfect credit score, lenders can (and do) still say no when you apply for loans or credit cards.

Your credit score is just one piece of the puzzle. Things like income, employment history, and debt-to-income ratio all weigh heavily in the decision too.

So while 850 looks flawless on paper, if you don’t meet a bank’s other requirements, you might still get denied for a card or loan.

Also, perfect scores don’t automatically guarantee that you’ll get a better deal than everyone else. Some financial products are open to people across all credit levels. You don’t get upgraded for everything.

How to climb into excellent credit territory

No matter where you are on the credit spectrum, you can always continue to improve your credit worthiness. Here are the moves that show lenders and credit bureaus you can handle credit responsibly:

Pay every loan payment and credit card bill on time — no exceptions.Keep balances low on your credit cards (ideally under 10% of your available limit).Don’t apply for a bunch of new credit cards or loans all at once.Keep older accounts open, since credit age matters.Check your credit reports regularly to catch and fix any errors.

This is all simple stuff, but incredibly powerful over time.

The bottom line

I’ll be stoked if my score creeps up those last 10 points. But it’s just an artificial milestone my ego wants to check off.

Whether I stop at 840 or land at 850, the difference is mostly cosmetic. The real prize is having excellent credit to open doors, save money, and have more options.

So don’t sweat perfection. Build the habits, enjoy the perks, and if you ever do hit that perfect 850, hey, brag about it a little. You’ve earned it.

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