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What Can You Do with an Excellent Credit Score?
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If you’ve ever wondered what you can do with good credit, the answer is quite a lot. One, a high credit score opens doors to better interest rates. Two, it grants access to premium credit cards, exclusive loyalty programs, and other perks. In essence, a good or excellent credit score is a financial launchpad. You can leverage it to turn your financial aspirations into realities—whether you want to buy a home, finance a new car at a low interest rate, or qualify for attractive travel rewards cards that make your next vacation more affordable.
So, what can you do with an excellent credit score specifically? You could negotiate more favorable terms on major loans, tap into 0% introductory APR credit union credit card offers, and qualify for high-end financial products. It could mean fewer hassles when applying for rentals or landing that dream apartment. A top tier score also helps you keep more money in your pocket over the long run. With lower interest charges and fewer fees, you can channel your savings into investments and retirement accounts or simply enjoy more of your hard-earned money.
Lesson Notes:
- Credit scores can range from poor to excellent.
- A good credit score can open the door to better borrowing opportunities.
- To maintain a good credit score, it’s important to pay your bills on time, keep credit utilization low, build credit history, diversify your credit mix and regularly check your credit report.
- Better credit can get you access to better credit card rewards and benefits.
LESSON CONTENTS
Understanding credit scores: Good, very good, and excellent
Before diving deeper into what you can do with a very good credit score, let’s clarify what’s a good credit score and the different tiers of credit scores. While standards vary slightly between the major scoring models—FICO and VantageScore—these general guidelines are widely accepted:
- Excellent: Typically, 800 and above on the FICO scale
- Very Good: Around 740 to 799
- Good: Approximately 670 to 739
- Fair: Around 580 to 669
- Poor: Below 580
The FICO score, one of the most used, ranges from 300 to 850. So, what is an excellent credit rating? According to FICO, a score of 800+ is considered “exceptional” or “excellent.” An excellent score signals to lenders that you are a very low-risk borrower. This assurance allows them to offer you the best available terms on loans and credit products.
On the other hand, a good or very good credit score still places you in an advantageous position, just not quite at the pinnacle that excellent provides. Indeed, most Americans fall under the good bracket. The average FICO credit score among U.S. consumers in 2024 was 717 (Arkali, 2024), which implies that most Americans are in healthy financial shape.
Having an excellent score versus a good one translates into thousands of savings over the life of a mortgage, auto loan, or personal loan. For example, the average interest rate on a 30-year fixed mortgage for someone with an excellent score might be several fractions of a percentage point lower than for someone with a very good score. This difference saves thousands of dollars in interest payments over the loan’s term.
How a good credit score impacts financial opportunities
What can I do with good credit? With a good or excellent score, the door opens to better borrowing opportunities, like obtaining credit cards with higher limits, mortgages with lower rates, and personal loans that won’t break the bank. Let’s delve into these tangible benefits:
- Better interest rates and loan terms
With good credit, you’ll likely qualify for low interest rates on credit cards, personal loans, auto loans, and mortgages. For example, as of December 6, 2024, the average national rate on a 30-year fixed mortgage for someone with an excellent score was 6.69% compared to 7.1% for someone with a good score (DeNicola, 2024). Over a 30-year mortgage, this can mean saving tens of thousands of dollars.
- Access to premium credit cards and rewards programs
A high credit score grants access to top-tier credit cards featuring lucrative perks—cashback offers, airline miles, hotel points, and exclusive lounge access. This is one of the core benefits if you're wondering what you can do with excellent credit. For instance, the Chase Sapphire Reserve or the American Express Platinum require very good to excellent credit. These cards come with substantial perks like travel credits, airport lounge access, and exclusive entertainment benefits like special ticket access.
- More favorable insurance rates and housing options
A solid credit score can also affect non-credit-related areas. Many insurers use credit-based insurance scores to set premiums. With a strong credit rating, you enjoy significantly lower insurance costs. Additionally, landlords often check credit scores during the rental application process. A high score simplifies getting approved for an apartment and potentially lowers your security deposit.
- Career and business opportunities
In some cases, employers conduct credit checks in the hiring process, particularly for roles in finance or positions of trust. Although not universal, a good score can help you stand out. Moreover, if you plan to start a business, a good personal credit score may help you secure better small business loans, lines of credit, or business credit cards at lower rates.
In short, having a good score is not just about borrowing money—it’s about leveraging credit to enhance all aspects of your financial and personal life.
Steps to achieve and maintain a great credit score
If you’re interested in knowing how to have a great credit score, the path is surprisingly straightforward. It involves consistent, responsible credit habits that, over time, position you at the top of the credit spectrum. Here are the fundamental steps:
- Pay your bills on time, every time
Payment history contributes about 35% to your credit score computation (FICO, 2024). Set up calendar reminders, alerts, or automatic payments to guarantee you never skip a due date. Remember, even one late payment can harm an otherwise excellent credit score.
- Keep credit utilization low
Credit utilization—the ratio of your credit card balances to your credit limit—strongly influences your score. Aim to keep it under 30%. For example, if you have a $5,000 credit limit across all your credit cards, keep your total outstanding balances under $1,500. If you are striving for a top-tier score, maintain utilization below 10%.
- Build a long credit history
The length of your credit history matters. The longer you’ve had credit and the longer your accounts have remained in good standing, the better. In most cases, it is best to not close old, unused accounts if they have no annual fee; they help increase the average age of your credit history.
- Diversify your credit mix
Lenders want to see that you are capable of handling multiple types of credit. Thus, a mix of credit cards, installment loans (auto, mortgage), and a personal loan handled responsibly improves your standing. A diversified credit mix accounts for 10% of your score.
- Check your credit report regularly
Since you are entitled to a free credit report annually from Equifax, Experian, and TransUnion, you can check your report for free every four months via AnnualCreditReport.com. Reviewing your reports helps you identify and dispute errors that could be dragging down your score.
- Limit new credit inquiries
On every new loan or credit card application, a hard inquiry reflects on your credit report. Luthi (2024) notes, “A single hard inquiry will usually take fewer than five points off your FICO Score, with this score impact remaining for up to a year.” Therefore, only apply for new credit when necessary to reduce these negative impacts.
If you follow these steps on how to build your credit score, you’ll gradually see gains. Remember, this is a long-term process that requires patience.
Maximizing rewards and benefits with excellent credit
Once you reach that top tier, you may wonder, what can I do with a 750 credit score? Or what additional perks are available when you surpass even that strong benchmark? With excellent credit (typically 800+), you’re in the driver’s seat. It’s time to reap the rewards.
- Travel perks and VIP experiences
High-end travel credit cards offer substantial travel credits, access to elite airport lounges, free checked bags, complimentary hotel night stays, and points you can redeem for international first-class flights. With a top score, you’re more likely to be approved for cards like the American Express Platinum or Citi Prestige, granting you a range of rewards and exclusive perks.
- Lucrative sign-up bonuses and cashback
Elite credit cards often feature sign-up bonuses worth hundreds of dollars, sometimes more than $1,000 in travel value. High credit limits and low interest rates mean you can make strategic large purchases and pay them off to maximize rewards without incurring heavy interest. If you’ve ever asked yourself what can I do with a very good credit score, one answer is: score the best deals on credit card bonuses and lucrative cashback programs.
- Exclusive banking and concierge services
Some banks offer high-value customers—often those with excellent credit—private banking relationships or preferential treatment. This includes priority customer service, lower or waived fees, and access to specialized financial products like investment advisory services, high-yield savings accounts, or home equity lines of credit with better terms.
- Enhanced negotiating power
When you have an excellent credit score, you become a customer lenders compete for. You are in a strong negotiating position. You can push for favorable terms if you're looking to refinance your mortgage, negotiate a better credit card interest rate, or score a lower auto loan APR.
In essence, achieving and maintaining a high score improves your financial life and transforms your experiences. You maximize rewards and secure long-term benefits that go far beyond the basics of borrowing money.
Common mistakes to avoid when managing good credit
Even when you’ve built a good credit score, it’s important not to grow complacent. Failing to maintain good habits can cause your score to slip. Here are some common mistakes to avoid:
- Missing or late payments
One late payment can significantly lower a very good or excellent credit score. Use automatic payments or reminders to ensure consistency. Your payment history is crucial, and slacking even once can hurt.
- Running high credit card balances
It’s tempting to rely on credit for convenience. However, maxing out cards or carrying large balances sends the wrong signal to credit bureaus and lenders. Keep your utilization low to preserve your score.
- Applying for too many credit accounts at once
Each new account application causes a hard inquiry on your credit report. Multiple inquiries within a short span signal risk to lenders, lowering your score and limiting future opportunities.
- Ignoring errors on your credit report
Mistakes happen. A clerical error at a lender or even identity theft can damage your credit. Credit report errors are common, accounting for almost half of the complaints to the Consumer Financial Protection Bureau in 2023 (Consumer Reports, 2024). So, regularly check your credit reports. If you spot an error in your report, dispute it immediately.
- Closing old credit accounts unnecessarily
Older accounts help your score by increasing the average length of your credit history. Unless an account has high fees, it’s generally best to keep it open to maintain your credit age and available credit limit.
By applying the best credit card tips and tricks and avoiding the pitfalls mentioned above, you’ll safeguard the credit score you’ve worked hard for. Plus, you will continue enjoying the financial advantages it brings.
FAQs
What is considered a very good or excellent credit score?
Generally, a very good score ranges from about 740 to 799, while an excellent credit score is 800 and above. This high tier means lenders see you as a very low-risk borrower, allowing you to access the best available rates and terms.
How does having a good credit score save me money?
A good or excellent score means you qualify for lower rates on mortgages, auto and personal loans, and credit cards. Even a 100 basis point difference in interest leads to thousands of dollars saved over the loan term. Good credit also lowers insurance premiums, reduces security deposits for utilities and rentals, and helps you secure credit cards with lucrative rewards and no annual fees.
What are the best credit cards for excellent credit?
Cards that typically require an excellent score include the Chase Sapphire Reserve, American Express Platinum, and Citi Prestige. These cards offer substantial travel rewards, cash back, and exclusive perks like lounge access and travel credits. To qualify, you usually need a score in the mid-700s or higher.
Can I improve my credit score even if it’s already good?
Absolutely. If your score is in the good range, there’s still room to reach very good or excellent. You can move into the next tier by maintaining a low credit utilization rate, limiting new credit applications, and paying bills on time. Over time, these habits build a stronger credit profile.
How can a 750 credit score impact my financial opportunities?
A 750 score places you firmly in the very good range, making you eligible for favorable interest loan rates. This means thousands of savings on mortgages, credit cards, auto, and personal loans. Plus, you enjoy premium credit cards with perks such as cashbacks, travel credits, and exclusive benefits like airport lounge access. Thirdly, you will experience positive impacts through lower insurance premiums and security deposits.
Citations
Can Arkali (2024, October 9). Average U.S. FICO® Score stays at 717 even as consumers are faced with economic uncertainty. FICO. https://www.fico.com/blogs/average-u-s-ficor-score-stays-717-even-consumers-are-faced-economic-uncertainty
Louis DeNicola (2024, December 12). Compare Current Mortgage Rates. Experian. https://www.experian.com/blogs/ask-experian/compare-current-mortgage-rates/
FICO (2024). What's in my FICO® Scores? https://www.myfico.com/credit-education/whats-in-your-credit-score
Ben Luthi (2024, November 8). What Is a Hard Inquiry and How Does It Affect Credit? Experian. https://www.experian.com/blogs/ask-experian/what-is-a-hard-inquiry/
Consumer Reports (2024, February 15). Credit report error complaints to CFPB have increased more than 2.5 times since 2021. https://advocacy.consumerreports.org/press_release/credit-report-error-complaints-to-cfpb-have-increased-more-than-2-5-times-since-2021/
*PLEASE NOTE: This article is intended to be used for informational purposes and should not be considered financial advice. Consult a financial advisor, accountant or other financial professional to learn more about what strategies are appropriate for your situation.
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