What counts as a high credit score can vary a lot by scoring model and use. In general, however, there comes a point of diminishing returns for credit scores where you’re really already getting all that you can out of your excellent credit and a higher score isn’t going to make much of a difference.
This is often referred to as having super prime credit. Experian defines super prime credit as a VantageScore 4.0 of 781 to 850 (out of a total of 850). Beyond the warm, fuzzy feeling of having reached a personal finance goal, having a high credit score can also open doors and save you money.
Here are a few of the best perks you unlock when you reach a high score in the credit game.
1. Access to the best loans and credit cards
My favorite part about having great credit is that I can generally apply for whatever credit cards I want without having to wonder if I’m qualified. I know my credit scores are high enough that even the most persnickety issuer won’t turn their nose up at them.
This also applies to other credit products. There are some personal loan or auto lenders who work exclusively with people who have excellent credit, meaning you won’t even get in the metaphorical door without a high credit score.
And yes, this is generally where you’ll find the lenders with below-market interest rates. (See perk number two.)
2. The lowest possible interest rates
Alright, technically, having a high credit score isn’t the only way to get lower interest rates. For instance, you could buy points on a mortgage loan to lower your interest rate for the loan. That can get very, very expensive, however. But building great credit can be absolutely free.
If you want a more practical example of how your credit score can impact your rates, consider this 2024 Experian data on the average interest rate for new and used car loans for each credit score range:
| Credit Score Range | Avg. Rate for a New Car Loan | Avg. Rate for a Used Car Loan |
|---|---|---|
| 781 to 850 | 5.25% | 7.13% |
| 661 to 780 | 6.87% | 9.36% |
| 601 to 660 | 9.83% | 13.92% |
| 501 to 600 | 13.18% | 18.86% |
| 300 to 500 | 15.77% | 21.55% |
Data source: experian.com
Taking this a step further: If you had a $40,000 auto loan with a five-year term, the difference in the lowest rate in the table vs. the highest rate is about $200 a month on your car payment.
3. An easy way to help your kids build credit
When you have a strong credit history, you can leverage that credit to give your progeny a jump start on their own credit by adding them as an authorized user onto your well-established, always-paid-on-time credit card (or two).
Most issuers report payment history to the credit bureaus for the primary user and the authorized user, which can help a credit newbie start establishing a credit history. This is a very underrated perk of great credit that I think too many people overlook.
Note: Some issuers have a minimum age requirement for authorized users.
On the other hand, it could actually hurt your child’s credit if the credit card user in question misses payments or carries high balances. So avoid this method if you’re prone to making these mistakes.
Take your time and do it right
Reaching the pinnacle of super prime credit scores is a process that can take years (though perk No. 3 may help your kids get there faster). Just don’t try to rush the process too much — such as by trying to open too many credit cards at once — or you could wind up doing your score more harm than good.
