What is an excellent credit score?

Generally, credit scores above 800 are considered excellent. But what counts as excellent can vary—in part because people can have multiple credit scores. And also because decisions about loan approvals and terms are ultimately up to individual lenders. So what one lender considers excellent may not be the same as another. 

But in general, the better your credit score, the better your chances of being approved to do things like borrow money or get a credit card. But how do you get excellent credit scores? And how can you find out where your credit scores stand?

Key takeaways

•  Excellent credit scores are usually 800 or above on a scale of 300-850.
• An excellent credit score can help borrowers qualify for better loan terms and interest rates.
• You can build an excellent credit score by using credit responsibly over time. This includes things like paying bills on time and applying only for the credit you need.

Credit scoring company FICO categorizes most of its credit scores on a scale of 300-850. And it defines scores between 800 and 850 as exceptional.

VantageScore also uses the same 300-850 range. But it says excellent credit scores range from 781 to 850.

There are various benefits to having excellent credit. For instance, higher credit scores can help you qualify for different financial products with better terms and potentially lower interest rates. 

Higher scores can also lead to things like higher credit limits and lower insurance premiums. And they can even be the deciding factor in qualifying for a new apartment or landing a job.

Learn more about the benefits of a good credit score.

According to the Consumer Financial Protection Bureau (CFPB), a few factors that generally affect credit scores are:

• How consistently you’ve been making payments on time
• How much current unpaid debt you have
• Your credit history
• New credit applications
• Your credit mix
• How much of your available credit you’re using, or your credit utilization ratio

Lenders and creditors typically report your credit activity to the three major credit bureaus every 30-45 days. These bureaus—Equifax®, Experian® and TransUnion®—then update your information in your credit reports. Not all lenders report to all three of the main national bureaus—some might report to two, one or none. 

How long each item stays on your credit reports depends on the type of information it is. For example, hard credit inquiries can stay on your reports for up to two years. A late payment could stay on your credit reports for up to seven years. And bankruptcy could stay on your reports for up to 10 years.

Credit reports also usually contain personal information like your name, address and employer. If anything changes, you can typically update individual lenders and creditors, who should then pass it on to the credit bureaus. 

Whenever you receive a credit report, you’ll want to check it for any errors. Errors can potentially lower your credit scores, but you can dispute them.

According to the CFPB, there are four main ways to access your credit scores:

• Check your credit statements. Some lenders show customers their credit scores on monthly statements. And if you’ve applied for credit, the lender usually tells you the credit score they pulled at the time of application.
• Sign up for a free credit monitoring service. You can sign up for a service like CreditWise from Capital One. CreditWise is a completely free tool that’s available to everyone—not just Capital One cardholders. It allows you to monitor your VantageScore 3.0 credit score and check your TransUnion® credit report. You can also get a free copy of your credit report annually at AnnualCreditReport.com. 
• Get them from a credit-scoring company. You can access your credit score from each of the two main credit-scoring companies, FICO and VantageScore. But access could cost money.
• Ask a nonprofit credit counselor. Some credit counselors can give you your credit scores and help you understand them. You can visit the National Foundation for Credit Counseling or the Financial Counseling Association of America to search for a reputable service. And then you can consider looking it up with your state’s attorney general or consumer protection agency to find out if it’s trustworthy.

To build and maintain excellent credit scores, you need to use your credit accounts responsibly over time. Here are some ways to do that:

Your payment history is an important factor used to calculate your credit scores. It shows how well you’ve done making payments on time. Late or missed payments can reduce your credit scores. But setting up reminders or automatic payments can help you remember to make on-time payments.

Credit utilization is another important factor in calculating your credit scores. It refers to the amount of credit you’re using compared with your total credit limit. The CFPB says to keep your credit utilization ratio below 30%. So if you have a credit limit of $1,000, you’d want to keep your credit card balance below $300.

Having a diverse credit mix is another credit scoring factor. It’s an indication you’re able to manage and maintain revolving credit accounts and installment loans.

Your length of credit history is also an important component of your credit scores. A long and positive credit history suggests you can manage credit responsibly.

Credit score calculations take into account your recent credit activity. If you apply for multiple lines of credit over a short period of time, lenders may think your financial situation has changed for the worse. Plus, the hard inquiries from your applications can temporarily hurt your credit.

If your credit scores increase, however, consider whether upgrading or applying for a new card might better fit your lifestyle.

Mistakes in your credit reports could negatively affect your credit scores, so it’s important to monitor your credit. For free credit scores and reports, you can visit AnnualCreditReport.com or sign up for CreditWise from Capital One.

Learn more about excellent credit scores with answers to these common questions.

Having excellent credit scores can help you get the best rates and terms when you apply for financial products. It could even help you when applying for a new job, apartment or cellphone plan.

So if you’re looking to build credit, these tips to improve your credit scores could help. And for help keeping an eye on your credit, you can check out CreditWise from Capital One. It’s free to use, and it won’t hurt your credit—no matter how often you use it.

Credit in a great place already? Check out some of the credit cards for excellent credit.

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• Explore Capital One’s credit cards for building credit with responsible use.