What Is a High Credit Score? And Why Should You Care?
Let’s start with a little truth bomb: Your credit score is basically just a financial popularity contest. The banks are the judges, and they’re deciding how cool (read: responsible) you are with money. And like any popularity contest, winning comes with perks—lower interest rates, better loan offers, and the magical ability to rent an apartment without handing over your firstborn child as collateral.
But is getting a high credit score actually worth the effort? And what even is a “high” score? Let’s break it down.
First Things First: What’s Considered a High Credit Score?
Alright, here’s how it works: Credit scores range from 300 to 850. (Why 850? Who knows. Maybe the credit gods just wanted to be difficult.)
- 300-579: Basically, “Yikes.” Lenders will side-eye you so hard.
- 580-669: Meh. Not terrible, but not great.
- 670-739: Now we’re talking. This is “average” to “pretty solid.”
- 740-799: Ooo, fancy. You’ll get the good rates.
- 800-850: Officially elite. If credit scores had VIP sections, this is it.
So when people talk about a “high credit score,” they generally mean anything above 740. That’s when lenders look at you and go, “Ah, yes, a responsible adult!” instead of “Should we make them put down a bigger deposit just in case?”
Why Does a High Credit Score Actually Matter?
In a perfect world, we’d all have piles of cash and wouldn’t need to borrow money. But real life doesn’t work like that. You want to buy a house? You’ll need a mortgage. Need a car but don’t have $20K lying around? A loan it is. Even things like insurance rates can be affected by your credit score. Because, for some reason, companies assume bad credit means you’re more likely to crash your car. (Make it make sense.)
Basically, a high score saves you money. A low score? It can make everything—loans, credit cards, even some bills—way more expensive.
“Okay, But How Do I Get a High Credit Score?”
Ah, great question. And the good news is, it’s not actually that complicated. Annoying? Yes. Complicated? Not really.
- Pay your bills on time. Every. Single. Time. Late payments are like giant neon signs that say, “I’m risky!” and creditors do not love that.
- Keep your credit card balances low. We’re talking under 30% of your total limit, but under 10% is even better. Maxing out your credit cards makes lenders nervous.
- Don’t close old accounts (unless they charge fees). The longer your credit history, the better. Kill an old credit card account, and you might accidentally lower your score.
- Don’t apply for a ton of credit all at once. Each application dings your score a little, and if you go on a shopping spree for new credit cards, lenders will wonder what kind of financial chaos you’re in.
- Check your credit report for nonsense. Mistakes happen. Identity theft is real. You get one free credit report a year from AnnualCreditReport.com—use it.
Some Quick Credit Score Myths—Busted
Because the internet is full of bad advice, let’s clear up a few things:
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- “I should carry a balance on my credit card to build credit!” Nope. Interest is a scam. Pay that thing off in full if you can.
- “Checking my credit score will hurt it!” Also no. Checking your own score (a “soft pull”) does nothing to your number.
- “I don’t need credit if I just use cash!” That’s great in theory, but real talk—at some point, you’ll probably want a mortgage, car loan, or even a decent credit card for emergencies.
FAQ: Real Questions, Real Answers
Should I get a credit card just to build credit?
Honestly? If you can trust yourself not to turn into a shopping menace, sure. Get a basic credit card, put one small bill on it every month, and pay it off in full. Done. Easy.
How fast can I raise my credit score?
Not as fast as you’d like. If your score is low, expect slow progress—months, sometimes years. But good habits will get you there.
What if I have terrible credit?
First, breathe. You’re not doomed. Start paying on time, clean up any messes, and don’t rack up more debt. Over time, it’ll improve.
The Bottom Line
A high credit score makes life cheaper and easier. But it’s not magic—it just requires some basic good habits. So don’t overcomplicate it. Pay on time, keep debt low, rinse, repeat. And if you want more real, no-BS advice, subscribe to the newsletter or tune into the Get Out of Debt Guy podcast. Because let’s be honest—money advice is way more fun when it doesn’t make you feel bad about yourself.
