Having an exceptional credit score is usually seen as something to strive for But is there actually such a thing as having too high of a credit score? The short answer is yes – it is possible for your credit score to be considered too high by some lenders. While a higher score is generally better, there are some potential downsides to having an exceptionally high credit score over 800.
What is Considered a High Credit Score?
Credit scores range from 300 to 850. In general:
- A credit score above 760 is considered excellent
- Scores between 700 and 759 are good
- Scores between 670 and 699 are fair
- Anything under 670 is considered poor
So a “high” credit score is usually 760 or above, with 800+ being exceptional. Only about 20% of consumers have credit scores in this top tier range.
The Benefits of a High Credit Score
There are certainly many advantages to having a pristine credit score:
- You’ll qualify for the best interest rates on loans and credit cards
- Creditors will view you as lower risk, making approval easier
- You’ll have access to top rewards credit cards and programs
- It demonstrates responsible money management
- May help you qualify for better rental housing
- Could lower insurance premiums in some cases
So clearly there are many financial perks and advantages to reaching that peak credit score range.
When Can a High Credit Score Work Against You?
While less common, there are a few scenarios where an exceptionally high credit score could have some unintended consequences or work against you:
1. More Significant Impact from Missed Payments
If you have a long history of perfect payments a single late payment can have an outsized impact on your credit score. For someone with a lower score, a missed payment may not lower their score much further. But if you have pristine credit, it could cause a more dramatic drop.
For example, a 30-day late payment could drop an 800 score by 100 points or more, whereas someone with a 700 score may only drop 50 points for the same missed payment. Many lenders now report late payments to the credit bureaus after just 30 days past due.
2. Difficulty Qualifying for Specialty Loan Programs
Some mortgage and government-backed loan programs actually have maximum credit score thresholds. This seems counterintuitive, but it happens
For example, VA loans and USDA home loans are intended for lower-income borrowers. There may be a cutoff at 640 or 680, where those with higher scores no longer qualify. So a too-high score could exclude you from some affordable loan programs.
3. Higher Interest Rates from Creditors
Believe it or not, some lenders actually charge higher interest rates to those with exceptional scores. They assume that someone with an 850 score has access to the lowest rates, so they bump up pricing to maximize their profit.
This seems to happen a lot with credit card offers in particular. When issuers offer big signup bonuses to high scorers, they have to make up for it with higher long-term interest rates.
4. Increased Scrutiny from Lenders
When lenders see a credit score that seems “too good to be true”, it can raise suspicions and prompt additional screening. They may suspect identity theft or that your report is inaccurate.
It may seem counterintuitive, but having perfect credit can make lenders look more closely and add more checks. They want to make sure that your score accurately shows how risky you are.
5. Higher Risk of Credit Card Fraud
Criminals who want to open fake accounts are often drawn to people with high credit scores, especially ones over 800. Bad people see high scores as a sign of high credit limits.
So you may face more risk of having your identity stolen or existing accounts compromised. Being vigilant about monitoring your credit reports is critical.
6. Potential Denials from Lenders
Some lenders automatically reject applicants whose credit scores exceed a defined upper threshold, like 820. It sounds strange, but may happen. They figure such high scores must be a mistake.
And if they do approve, they will likely recheck your score later and monitor for significant drops. Even a small score decrease of 20 points can lead to accounts being closed.
Tips for Managing a Too-High Credit Score
If you’re one of the lucky few whose credit score is too good, here are some things you can do:
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Don’t open new credit accounts just to lower your score. This approach can backfire.
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Consider adding yourself as an authorized user on someone else’s credit card instead. It adds a card to your history without a hard inquiry.
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If you miss a single payment, get back on track right away. Don’t let it snowball.
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Opt to exclude your credit score when filling out credit card or loan applications.
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Ask lenders to reconsider you if declined for having too high of a score. Supply additional verification info if needed.
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Monitor your credit reports frequently for any suspicious activity or errors that could quickly tank your score.
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Let one of your credit cards report a small, non-zero balance each month. Keeping all cards at 0% utilization can seem dubious.
The Bottom Line
While rare, there are scenarios where an exceptionally high credit score over 800 could work against you. The key is monitoring your credit, being aware of how different creditors perceive ultra-high scores, and taking steps to manage it while keeping your perfect payment history intact.
Having great credit is important, but once you’re in that top tier, make sure to manage expectations, as some creditors will view that high score differently than you’d assume.
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What to Do if You Don’t Have a Credit Score
Credit scoring models cant score credit reports that dont have enough information.
For FICO® Scores, you need:
- An account thats at least six months old
- An account that has been active in the past six months
VantageScore can score your credit report if it has at least one active account, even if the account is only a month old.
If you arent scoreable, you can:
- Sign up for Experian Goâ¢. Experian Go helps you jump-start your credit by creating an Experian credit report for you even if you dont have any credit accounts yet. It then provides you with personalized insights on how to move forward with building credit.
- Use Experian Boost®ø. Once you have an Experian credit report, you can use Experian Boost to get credit for certain qualifying bills, such as utility bills, streaming subscriptions, insurance and eligible rent payments. These payments can be added to your credit history and instantly increase your FICO® Score.
- Become an authorized user. When someone adds you as an authorized user on one of their credit cards, the accounts details and history might be added to your credit report. It can help you establish your credit, although the account could also help or hurt your score depending on how the primary cardholder manages the card.
- Open new credit accounts. It can be difficult to qualify for new credit accounts when you dont already have a credit score. But there may be some low- and no-fee options, such as credit-builder loans, lending circles and secured credit cards that dont have an annual fee.
Learn more: Ways to Build Credit if You Have No Credit History
Can your credit score be too high?
FAQ
Is it bad if your credit score is too high?
Key Takeaways. High scores are better than lower credit scores because they show lenders you are a reliable borrower. Even though higher scores are better, some ways to get them can hurt your finances more. For example, taking out new credit to lower your credit utilization ratio can hurt your score.
Is a 900 credit score possible?
Has anyone gotten an 850 credit score?
Even though Michell got an 850, it didn’t have much of an effect on his finances because his interest rates and insurance costs stayed the same. Jan 4, 2025.
How rare is a 750 credit score?
It’s better to have a credit score of 750 than the average credit score in the US, which is 700. While it’s not as rare as an exceptional score of 800 or higher, it still places you in a relatively strong position with lenders.