What is an excellent credit score?

FICO® says scores of 800 or above are considered excellent. But ultimately it’s up to lenders to decide, and what one lender considers excellent may not be the same as another. 

In general, the better your credit scores are, the better your chances of being approved for credit cards, loans and more. But how do you get excellent credit scores? And how can you find out where your credit scores stand?

What you’ll learn:

• What counts as an excellent credit score depends on the scoring model and company. FICO calls its highest category “exceptional,” and VantageScore® calls its “superprime.”

• An exceptional FICO score ranges from 800 to 850. A superprime VantageScore score ranges from 781 to 850.

• Having an excellent credit score could help you qualify for better loan terms and interest rates.

• You can build an excellent credit score by using credit responsibly. That means doing things like paying bills on time and applying only for the credit you need.

Credit-scoring company FICO calls its highest scores exceptional. This category includes scores between 800 and 850 on a scale of 300-850.

Credit-scoring company VantageScore calls its highest scores superprime. On a scale of 300-850, superprime scores fall between 781 and 850.

Having a high credit score can come with a variety of benefits, and it can help you:

• Qualify for loans and credit cards

• Get favorable terms and lower interest rates

• Secure higher credit limits

• Pay less for insurance

• Qualify for a new apartment

• Be hired for a job, if the employer runs a credit check

There are several factors that can impact your credit scores. And different factors may have varying degrees of impact. Here are the factors FICO uses to calculate its credit scores:

• Payment history: 35%

• Credit utilization: 30%

• Length of credit history: 15% 

• Credit mix: 10%

• New credit applications: 10%

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

• Pay your loans on time. Your payment history is an important factor used to calculate your credit scores. 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. 

• Keep credit utilization low. Credit utilization refers to the amount of credit you use compared with your total available credit. The Consumer Financial Protection Bureau says to keep your credit utilization ratio below 30%. 

• Have a healthy credit mix. A diverse credit mix indicates you can manage and maintain revolving credit accounts and installment loans.

• Keep accounts open and in good standing. Having a long and positive credit history suggests you can manage credit responsibly.

• Apply only for the credit you need. If you apply for multiple lines of credit over a short period, lenders may think your financial situation has worsened. Plus, the hard credit inquiries that result from your applications can temporarily hurt your credit.

• Monitor your credit reports. Mistakes in your credit reports could negatively affect your credit scores, so monitoring your credit is important. You can sign up for CreditWise from Capital One for free. You can also use AnnualCreditReport.com to request a free copy from each of the three major credit bureaus.

FICO says scores 800 and above are exceptional. VantageScore says scores above 780 are superprime, its highest-scoring category.

So if you’re looking to improve your credit, you might consider these tips. Looking for your next credit card?

• Check for pre-approval offers with no risk to your credit score.

• Earn unlimited 1.5% cash back on every purchase, every day, with a cash-back credit card.

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