Excellent FICO Score

September 15, 2019

An excellent or exceptional FICO score can have a positive impact on many aspects of your finances.

For example, when you’re applying for a credit card, a high FICO score improves the likelihood of an approval.

According to Fair Isaac Corporation, an excellent FICO score falls between 800 and 850. Here’s some additional information directly from the company:

“This credit score is well above the average score of U.S. consumers and clearly demonstrates to lenders that the borrower is an exceptionally low risk.”

Since approximately 90 percent of top lenders use FICO Scores to determine your creditworthiness, maintaining an excellent score should be high on your financial to-do list.

Here are some of the many things you can do to keep your score as high as possible:

1. Track It

Just because you have excellent credit today doesn’t mean this will remain true for the rest of your life.

It takes a lot of hard work and dedication to reach a FICO score of 800, but it only takes a mistake or two for it to drop fast.

Track your FICO score closely, as this allows you to address any negative change without delay.

Tip: you don’t need to check your score every month. Instead, once or twice a year is the right approach. 

2. Review Your Credit Report

There are many good reasons to regularly review your credit report. For example, mistakes are common, with one of these potentially dragging down your score.

Also, if something goes wrong, such as a missed payment, you can pinpoint it on your report and take steps to make things right.

Just the same as your FICO score, get into the habit of reviewing your credit report one to two times per year.

3. Keep Making Payments on Time

The best thing you can do to maintain your excellent FICO score is continue to make payments on time.

The quickest way to kill your score is to miss a payment entirely or pay 30+ days after the due date.

It’s safe to say that you already have a budget and system in place for tracking your expenses and paying bills on time. Stick with what helped you achieve an excellent FICO score in the first place.

Final Thoughts

Once you reach your goal of a FICO score of 800+, don’t do anything to put it in jeopardy.

By following the three tips above, you’ll find yourself in position to maintain your excellent FICO score. 

If for any reason your score dips, find out why and then take immediate action to rectify the problem.

What is your FICO score? Are you happy with it, or do you have room for improvement? Share your personal strategy for boosting your credit score.  

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