Good Enough

[MrSmooth]

I realize that some in this community aim for the top score of 850. That is a fine and honorable pursuit.

But what is the cutoff score to just get into the top group? Would a person holding a score of 750 get the same benefits as a person holding a score of 850? 

Thank you all in advance. 

[JoeRockhead]

Depends on what kind of credit products one is looking for.  Generally 760+ fico scores will qualify for the best credit cards, offers and the lowest interest rate offers.

There have been times where 850 scores have been a hindrance to getting approved for certain cards. Go figure 

[CreditCuriosity]

As mentioned 760 is kinda known as the golden tier anything usually above is icing on the cake.  Some exceptions, but for most part holds true

[markbeiser]

While my current goal is to see all of my scores over 800, long term I aim to maintain 780+ Fico 8 scores.
Some of the other scores will run a little lower, some higher.
760+ will get you the best rates in most cases, but there are times when being 780+ will get you just a tiny bit better of an offer.

[Thomas_Thumb]

---

@MrSmooth wrote:

I realize that some in this community aim for the top score of 850. That is a fine and honorable pursuit.

But what is the cutoff score to just get into the top group? Would a person holding a score of 750 get the same benefits as a person holding a score of 850? 

Thank you all in advance. 

---

Top tier for Classic Fico 8 scores is 800-850 or 760-850. Different institutions use different classifications. From a score only perspective 760 is the 2nd quintile - not really top tier. However, most lenders view 760 as sufficient for their best prime rate. A few may consider 800 and above as super prime.

I let my score bounce around. I set 780 as a lower limit red flag even though my Classic Fico 8 versions normally hover in the 830-850 range. Industry option scores are higher.

If you want a score that can provide worry free credit flexibility, set 800 as a goal. Then you can take on new credit and accommodate spikes in utilization without dropping below the 760 threshold.

[pizzadude]

In this thread a few days ago the OP stated their lender, Wells Fargo - was requiring a 790 to qualify for the best mortgage refi rates.

[ziggy29]

I'd say 800+ is good enough for pretty much everything, and 760+ is good enough for almost everything.  Somewhat paradoxically, an 850 score might reveal borrowing habits that make some lenders think you won't be profitable for them (very low card utilization, not carrying balances that generate interest, folks who charge for rewards and pay off every month).   

I've sometimes heard 780-800 as a cutoff for "super prime" for lowest rates, highest credit lines, and the lowest possible insurance premiums.  But typically, 760 seems to be "enough".

[markbeiser]

---

@ziggy29 wrote:

I've sometimes heard 780-800 as a cutoff for "super prime" for lowest rates, highest credit lines, and the lowest possible insurance premiums.  But typically, 760 seems to be "enough".

---

Since I'm in a state where insurance companies are allowed to factor in credit score/history, I'm looking forward to my credit scores all jumping up over 800 in February, just in time for my annual home and auto insurance reshop!

Last reshop I was just starting to move onto clean score cards, so score was in the 760s, but it was good enough to save me close to 40% over the previous year when my scores were in the 620 range.
A couple years before that, when my scores were in the 500s, my home insurance alone was almost twice what I pay for my auto+home now...

[Thomas_Thumb]

Fico credit scores are meaningless for insurance premiums. The insurance companies look at insurance based credit scores (CBIS). LexisNexis (LN) is the industry leader for these scores. There are multiple threads on the forums discussing CBIS.

Fyi-

1. Credit scoring algorithms are designed to predict the likelihood of a 90 day late.

2. Credit based insurance score algorithms are designed to predict likelihood of filing a claim. Different metrics are used for scoring and score ranges are different.

[markbeiser]

---

@Thomas_Thumb wrote:

Fico credit scores are meaningless for insurance premiums. The insurance companies look at insurance based credit scores (CBIS). LexisNexis (LN) is the industry leader for these scores. There are multiple threads on the forums discussing CBIS.

Fyi-

1. Credit scoring algorithms are designed to predict the likelihood of a 90 day late.

2. Credit based insurance score algorithms are designed to predict likelihood of filing a claim. Different metrics are used for scoring and score ranges are different.

---

We don't have access to those scores though, so all we have is to try to maximize FICO scores, and hope the behaviors that do so are also helping with insurance scores.
All I know is that when my scores tanked, my insurance costs skyrocketed, and when my scores recovered to higher levels than before they tanked, my insurance went WAY down.
My home insurance currently costs only about $300 more than when I first bought my house in 2007, for 3x the coverage.
I've not even seen a solid rundown on what factors go into insurance scores.🤷‍♂️