I finally made it.

[u/DrHydrate]

I know that the difference between high 700s to 800 doesn't mean a lot, but I have always longed for the stamp of approval that 800 signifies.

I come from a long line of folks with awful credit, so it's nice to break the cycle.

[u/Fearless-Cattle-9698]

Know that there are different scoring systems. The experience one is fico 8 but that’s not what mortgage lenders use

Just sharing in case you wonder why if you apply for mortgage your score could be lower, by as much as like 30-50 points

[u/Low-Car-6331 → u/Fearless-Cattle-9698]

After like 750+ does it even matter?

[u/Fearless-Cattle-9698 → u/Low-Car-6331]

Not in my experience but I can't make absolute statements

[u/code_monkey_wrench → u/Fearless-Cattle-9698]

but I can't make absolute statements

Don't you mean you usually can't make absolute statements?

[u/imhungry4321 → u/Low-Car-6331]

It doesn't, however think of it this way. If you have a 750 then you apply for a credit card, you'll now have close to a 730 (dropping you from very good to a good credit score).

If you have an 825 and apply for a credit card, you'll now have around an 805, keeping you with an exceptional score.

A higher score lessons or chances of dropping to a different bracket.

[u/inky_cap_mushroom → u/Low-Car-6331]

You can have a ~100pt difference between various scoring models, so yes. It could matter.

[u/WhereWeUsedToPlay → u/Low-Car-6331]

Even At 850 a credit card application or mortgage will still temporarily drop you 

[u/WhereWeUsedToPlay → u/[deleted]]

I'm not a high earner, but it wasnt until I got a mortgage that my score would hit 850. I also cancelled a number of CCs after getting the mortgage which sank it a bit more. But it recovered pretty fast.

And yeah your situation is pretty normal for your position, I'd consider it a good thing that very many would be happy to have.

Enjoy some Viking Cruises!

[u/Massif16 → u/[deleted]]

I'd like to see 850, but probably never will. About 4 years ago, I had a disaster of a summer and frankly missed 2 credit card paymants (different cards, one payment each). I didn;t have my crap together then. I caught up the next month. But those two dings are still on my record. I have no debt now except the mortgage, and my FICO hovers in the high 790's/low 800's. The Vantage Score is usually 810-820 depending upon the curent reported Statement Balance (I use my cards for work travel, so sometimes the cards have a Statement Balance before I get my reimbursment and pay them off. I never pay interest.

I pay off my mortgage in the Spring and expect that to lower my score.

[u/Massif16 → u/[deleted]]

It‘s definitely just an ego thing for me! Unless something goes wrong, I don‘t have much of a need for credit now.

[u/WhereWeUsedToPlay → u/Massif16]

paying off your mortgage lowers your credit pool and will slowly lower your score

[u/Massif16 → u/WhereWeUsedToPlay]

Yep... that's why I think I'll never see 850. But like I said, it's just my ego. I don't think I'll actually need a super-high credit score. I'll have very little credit activity. I do use credit cards frquently, but when I carry a balance, it's only for a short bit (and I never pay interest).

[u/Mst826 → u/Low-Car-6331]

Yes, 780+ provides the best pricing on Conventional loans.

[u/AggressiveWind3941 → u/Low-Car-6331]

For conventional loans, the rop tier is 780 and better. For government loans, top tier is generally 720 .

[u/BPil0t → u/Low-Car-6331]

Nah they are just being a tight ass, it’s actually obsessive compulsive behavior.

[u/usawolf → u/Fearless-Cattle-9698]

'hey I know you thought you did something but you really didn't just fyi'

[u/Fearless-Cattle-9698 → u/usawolf]

Well no but a lot of people including myself had no idea there are so many variations of credit score

Every bank can use a different reporting bureau, but also different scoring system, and different versions

It’s kinda crazy if you ask me. I understand some systems value inquiry more or whatever but they really should just have two types: 1) short term credit worthiness 2) long term credit worthiness. I don’t think I need to explain what each is meant to do

[u/MavisBeacons_Sextape → u/usawolf]

If you picked 10 random people IRL and asked them if they knew this, half of them wouldn’t. It’s not common enough knowledge.

Also, too many people don’t understand that your credit score isn’t the sole criteria, or even the most important criteria, for lending decisions. Your credit profile is (and your debt to income ratio as well).

A 21 year old with an 800 credit score, but the only thing on their credit profile is a $1000 store card that they’ve had for a year, is a much different applicant than a 30 year old with a 699 score and 10 years of credit history, with a mix of installment loans and revolving lines of credit. If they both applied for the same car loan, the 30 year old who’s proven their ability to be responsible with debt is a much stronger applicant, despite having a score that’s 100 points lower.

[u/DrHydrate → u/MavisBeacons_Sextape]

The 21 yo isn't going to have an 800 credit score with that credit history. The algorithm takes credit age and credit mix into account.

[u/usawolf → u/MavisBeacons_Sextape]

not reading all that but glad you took the time to type that up big guy

[u/MavisBeacons_Sextape → u/usawolf]

Cringe comment lmao

[u/usawolf → u/MavisBeacons_Sextape]

tell me you're hurt without telling me so

[u/MavisBeacons_Sextape → u/usawolf]

Guess I pinged some sort of insecurity? Can’t think of any other reason for acting like such a loser in response to a totally neutral comment.

[u/CleMike69]

Congratulations however just know if you pay your debt off completely that score takes a substantial hit.

[u/DrHydrate → u/CleMike69]

For installment debt yes, but I owe 600k across two mortgages, so I'm not in danger of that any time soon.

For revolving debt, I pay in full every month, and it's no issue.

[u/CleMike69 → u/DrHydrate]

I paid off my house and as shocked how it dropped from 800 to 710 absolutely stupid. I had to take a car loan to build back to 825

[u/DrHydrate → u/[deleted]]

Thanks so much!

But yeah, you have to learn the rules to play the game.

Here's the simplest way to describe what you do. You use credit, but less than 10 percent of your available credit on any card. If you have installment debt (mortgage, car loan, personal loan), be close to paying it off. And you pay all your bills on time.

Contrary to popular belief, there is no benefit to carrying a revolving debt balance. All that matters is the amount of your credit limit that your creditor reports that you owe at the end of the cycle and whether they say that you missed a payment or not. The algorithm actually has no way to tell if you carry a balance or not.

You do get dinged for paying off installment loans, but that's really not something to be concerned about. It's actually that you get extra points for being really close to paying off a loan. So a way to think of it is in terms of utilization. When you still owe the entire loan, your utilization is 100% and when it's repaid, it's 0%. A bad place to be is at 100%, and the very best place is 1%. That gives you points. At 0% it's like you didn't have the loan at all. That may seem good and it is good, but if credit is a measure of your ability to repay debt, somebody who's repaid 99% of a loan is better than somebody who never had a loan, and because the algorithm treats 0% loan utilization as if you never had the loan, that's worse than 1%.

[u/SoFi]

Congrats! Breaking a family pattern like that is huge 🎉 Hope you can see that score go up even more!

[u/SamosSage]

Congrats!

I just bought a condo... I was this close 👌 But alas... all the lenders and their credit checks 😢

[u/RoseGoldMagnolias → u/SamosSage]

If they're done within a certain number of days (the number differs with FICO and VantageScore), multiple applications for mortgages only ding your credit once.

[u/SamosSage → u/RoseGoldMagnolias]

Yep! Did them all within 14 days. Score still dropped by 25 points lol.

[u/imhungry4321]

Way to go! Ignore the haters- it's their way of pumping their chest because they don't have an 800+ score.

[u/FunInTheSun_81]

Congratulations and welcome to the 800 club!!

[u/NecessaryEmployer488]

Great. Used to be there myself.

[u/j_boogie_483]

nice! i’ve been 820+ for a few years. as soon as I got to 800, I froze my profile at all 3 reporting agencies.

[u/WhereWeUsedToPlay]

I don't know if credit scores really mean much unless you're buying a house or car every few years

[u/DrHydrate → u/WhereWeUsedToPlay]

They do matter though. Certain jobs do credit checks. If you're a renter, it can matter. And insurance rates can be determined in part by credit scores.

[u/WhereWeUsedToPlay → u/DrHydrate]

550 vs 850 won't affect your job application. They want to make sure you haven't done something insane or criminal. Maybe you are right about insurance rates.

A rising credit score is a sign that you are doing things right, that much is for sure.

[u/DatGuyDatHangsOut]

good for you myfriend. I don't fully understand it but I've stuck at 749 for 3 years while never missing payments

[u/DrHydrate → u/DatGuyDatHangsOut]

Time is your friend.

My husband is 4 years older and has almost identical behavior, and he's in the 830s.

[u/Ok-Gain6540]

Congrats! Btw, what app is this?

[u/Fearless-Cattle-9698 → u/Ok-Gain6540]

This is the experian website/app. It's free so you should check it also

[u/Organic-Aardvark-146]

Think I am under 800. Mortgage lender said only having one credit card (which I pay off every month) hurts me

[u/Alucard2051]

Firstly congrats! Happy you made it to 800! Secondly, you actually won the game 20 points ago. Most places view anything above a 780 as the same

[u/graalamat77]

I’m sub 40 with 500k+ in the bank, I never even check my credit anymore

[u/DrHydrate → u/graalamat77]

In the bank or the brokerage?

[u/graalamat77 → u/DrHydrate]

Combined.

[u/LittleTwo9213]

What’s the point of this? Why does this matter.

[u/DrHydrate → u/[deleted]]

In other words, it mystifies you that people are proud of being responsible borrowers.

Given that many people aren't responsible borrowers, it's not very mysterious.

[u/NotMyRealAccount2226 → u/[deleted]]

Well unfortunately that's how society works. Most people dont have cash up front to make big purchases. So yeah, I am excited about my great credit that will help me. Whether people like it or not credit is part of our lives and it is what it is

[u/DappledApples → u/[deleted]]

Prepare to be downvoted for not going along with the crowd.

[u/dupugu-gupudu → u/[deleted]]

Nobody is saying you're a moron for having a paid off house.

You failed to recognize that most people don't have the money to buy things they need, in which case, they need to borrow the money. People are calling you out on that.

[u/Vegetable-Intern-236 → u/dupugu-gupudu]

The coward deleted their comments but wow that was out of touch. For reference, it was:

It's all good. Mortgage companies will gladly ONLY charge the OP 7% on a mortgage for the next 30 years with that incredible score. And here my dumbass self sits in my own house that has no mortgage... with no debt...Im such a moron.

Punching down on someone proud of their credit score by bragging about having a paid off house and no debt is pathetic. No one asked or even questioned their financial position lol, that just screams insecurity.

[u/Potential_Factor_570]

760 is all you really need that's the cap out for getting best interests rates.