Building and maintaining your credit isn’t a passive process. Unforeseen financial struggle, a laid off job or just forgetting to write down due dates can all stand in the way. You don’t ever want to bite of more than you can chew when it comes to taking on debt, though if your credit is good enough you may be able to withstand a few rainy days. But what really is a good credit score? According to our modern FICAS model for scoring credit, your credit score is based on you payment history, total outstanding debt, the length of your credit history and credit mix (the number and variety of outstanding loans). On the scale of 300 from 850, a good credit score has been determined to be in the 670-739 ranges. The truth is, most consumers indeed have their credit scores fall in this range.

Broaden Your Financial Horizons

The better your credit score is, the more a variety options become available to. All a perfect credit score really means is that you’ve managed to consistently borrow and spend responsibly, and are therefore least likely to default on a loan. Anyone that wants to experience financial freedom to its fullest will want to compete with themselves for that excellent score, which FICO has set at 800 to 850. For starters, it becomes much quicker and easier to get approved for a loan such as a mortgage or car loan. Although be careful about trying to take on too many loan applications at once as this can quickly bring down your score. With an excellent credit score you can save the most money on interest since you’re eligible for lower interest rates. Minimum monthly payments also go down, so while you’re paying lower interest it can also make sense to extend the end date of the loan for the sake of financial breathing room.

Rock The World Of Credit

With an excellent credit rating, your freedom in the world of credit cards is at a maximum. A score this high shows you creditor that you can handle credit responsibly, and so you can qualify for a much higher credit limit than someone with the same income and good credit. Click this keyword alle to see a myriad of exciting credit card policies for everyone from fair to excellent credit. But before you go and apply for ten credit cards, remember that it is the same as with any loan- if you apply to too many in the same time frame it can negatively affect your score- besides, regardless of you credit score you do not want to rack up a bunch of debt from overspending your credit. 

Credit Cards- The Fun Part

The people with excellent credit who own several credit cards do so to take advantage of the different benefits offered to them by each card. One might get them cash back in the places they like to shop while another might offer 5x air mile rewards for every time the are at the fuel pump. Cards advertised to those with excellent credit may also come with generous signup-bonuses, or conveniences to make it easy to sign up, like boasting no annual fees for the first 12 months. One bank offers a card that has been top rated for amount of rewards it comes with. It promise 80,000 air miles for singing up, (valued around $1200 in utility), and users get 5x travel points, 3x for dining, 2x for travel-related expenditures, and even free Uber rides. The Annual fee is only $95, which is actually quite low for mega rewards cards. 

Take Control Of The Lending Aspect

As someone with excellent credit, you can be in control of your financial situation. If you have made it to the top and every creditor and lending is open to doing business with you, then you’ve also earned the freedom to shop around indefinitely until you find the loan or credit policy you are looking for. Conversely, if you credit is fair or worse, the number of opportunities to borrow money is drastically reduced, and fewer card policies are available. The credit products you may be eligible for may also come with terribly high interest or unfair policies. It is often those who already struggle the most that end up legally bound and gagged by bad creditors, trapped by them in a vicious cycle of debt. Even for those with excellent credit, your life can quickly spiral into chaos simply due to poor planning; say you do not keep track of your spending, or own too many cards to remember to pay them all off.

How To Maintain an 800+ Credit Score

If you already have a credit score these high, chances are you have a substantial credit history, which means you’ve opted to borrow money before. Did you know that periodically applying for a new loan or credit card also contributes positively to your score? But, the most dominant factor in building credit is payment history, so there really is no way around paying your bills on time. Alternately, keeping a low balance on your credit cards is also important for 800 and above credit. You never want to max out your credit and pay the minimum amount per month until it is paid off, as keeping debt around looks less than excellent to the credit bureaus. This is a practice that would qualify you as a credit user, which is less than glamorous in the world of consumer credit. On the other hand, healthy credit utilization is recommended to be less than 30% and so if you need to keep some debt around, there is room to breathe without having your score undermined

What Steps To Take If You Don’t Have Excellent Credit

Not everyone has mastered the modern art of financial credibility. Whatever may be the case- if you are unhappy with your current credit score or struggle with building credit; even if you have poor credit or no credit at all- you’re not alone. Today’s financial services have expanded to reach out to those at the bottom of the ladder, offering products designed to help anyone who is trying to get ahead. Even if you do not qualify to borrow money, you may qualify for a secured credit card designed to help you build credit, while getting used to paying off the balance periodically. A secured credit card is a backed by the user with a down payment of collateral cash to insure the lender from payment default. 

Establish Good Borrowing and Spending Habits

If you can in fact get a loan, do so, but not because you need the money. If you have unstable income or are unemployed then borrowing money is especially risky and you should probably avoid it. Even if you have income, it is better to be patient and save your money. In my opinion, the only necessary loan is your mortgage, since having shelter is not only a basic need, you actually are saving money in the long run by refusing to rent and taking on long-term homeownership. If you thought home prices got a once-in-a-lifetime increase in 2021, just wait five years. Otherwise, save your cash for car purchases. It is always better to spend well within your means so that spending becomes an enjoyable convenience and not a labor. That way, you can take the rest of your money and invest it- so that one day, that $50,000 sports car- becomes pocket change.