What Is Excellent Credit?

What is an excellent credit score?

Generally, an excellent credit score ranges from 781 to 850. However, what counts as “excellent” depends on the scoring model used. The two most common are FICO and VantageScore.

FICO is most widely used, relying heavily on factors such as payment history, credit utilization, length of credit history and types of credit. This can disadvantage people with limited or new credit histories.

VantageScore uses similar factors but is often more flexible, giving consumers with shorter or thin credit histories a better chance to have a score. It also considers alternative data, such as rent and utility payments.

Credit score ranges

Credit scores are divided into ranges, with excellent credit representing the highest tier. In the VantageScore model, this top tier is called “Superprime” and falls between 781 and 850. For FICO, the equivalent is labeled “Exceptional,” covering scores from 800 to 850.

VantageScore 4.0 uses four credit score ranges to classify consumers, FICO uses five. Here’s a range breakdown for each:

VantageScore 4.0

• Superprime (excellent): 781 to 850 – Borrowers are considered very low-risk and typically qualify for the best interest rates, highest credit limits and premium credit products.
• Prime (good): 661 to 780 – Borrowers are viewed as reliable, with access to competitive credit offers, though rates may be slightly higher than for Superprime.
• Near prime (fair): 601 to 660 – Lenders see moderate risk. Credit may be available but with higher interest rates or stricter terms.
• Subprime (poor): 300 to 600 – Considered high-risk borrowers. Access to credit is limited and rates or fees are usually higher.

FICO score

• Exceptional: 800 to 850 – Borrowers are considered very low risk and can access the best interest rates, highest credit limits and premium credit products.
• Very Good: 740 to 799 – Borrowers are considered low risk, qualifying for favorable loan terms and competitive interest rates.
• Good: 670 to 739 – Viewed as reliable by most lenders. Rates and terms are generally favorable, though not the absolute best.
• Fair: 580 to 669 – Lenders may approve credit, but interest rates are higher and terms are less favorable.
• Poor: 300 to 579 – Considered high risk. Access to credit may be limited and borrowing costs are typically higher.

» MORE: What credit score is needed to buy a house?

How lenders define excellent credit

Not all lenders define “excellent credit” the same way. Lenders set different thresholds based on the loan’s size, term and risk. For example, mortgages are large, long-term loans, so lenders typically require higher credit scores to offer the best rates. Auto loans and credit cards involve smaller amounts or shorter repayment periods, so lenders may have slightly lower thresholds for what counts as excellent.

Mortgages

Conventional mortgage lenders usually consider credit scores of 740 or higher to be excellent. Borrowers in this range are more likely to qualify for the lowest interest rates and may avoid private mortgage insurance (PMI) with a sufficient down payment. FHA or VA loans may approve slightly lower scores, but interest rates improve significantly above 740.

Auto loans

Auto lenders often view scores of 720 to 740 as excellent for new car financing. For used cars, a score of 700 or higher can qualify as excellent. Higher scores help borrowers access lower annual percentage rates (APRs) and better loan terms, reducing monthly payments.

Credit cards

Credit card issuers usually define excellent credit as 750 or higher, though some premium or business cards may require 770+. Consumers in this range can secure higher credit limits, lower APRs and top-tier rewards programs.

What makes up a credit score?

Credit scores are measured by various criteria, but can be summed up with five factors that affect your score: payment history, amounts owed, length of credit history, new credit and credit mix.

Factors for VantageScore

VantageScore has six criteria and can be more helpful for those with shorter credit histories. Its categories are almost identical to FICO, just slightly more granular.

Factors for FICO score

FICO’s score factors are widely used and considered industry standard.

Benefits of excellent credit

“Having excellent credit means showing proof that you're a low risk to lenders,” said Patrick Di Cesare, owner of the financial education company Basic Financial Literacy. “If you want to borrow money for a car or home, you'll get a much better interest rate and a lower monthly payment if you have a high credit score.”

A FICO score of 800-plus or a VantageScore of 781-plus means you have excellent credit.

Improving your credit score and/or aiming to have the highest credit score possible has multiple benefits, including:

• Better insurance rates: Insurance companies may pull your credit history or score to evaluate you as a customer, and the higher your score, the better your rates may be.
• Lower interest rates on loans: Whether it's an auto loan, home loan or personal loan, the lowest interest rates are always reserved for those with the highest credit scores.
• Access to more money: A higher credit score helps lenders trust you, so you might be able to borrow more.
• More job prospects: Some employers may look at your credit score when evaluating you for a position.
• Credit card perks: The best credit cards with the highest welcome bonuses and rewards perks typically require a high credit score to qualify.

» COMPARE: Best personal loans for excellent credit

How to get an excellent credit score

Improving your credit score isn’t necessarily hard, but it does take time and consistent effort. Making timely payments, keeping balances low and monitoring your credit are most important.

1. Pay on time

“Pay all your bills off in full each month,” said Di Cesare. “Setting autopay up so you don't forget is an easy way to do this. On-time payments account for 35% of your credit score and are the most important factor.”

2. Keep utilization low

If you have revolving credit lines and credit cards, don’t max them out. Keep your credit utilization below 30% of your total available credit.

3. Regularly check your credit report (and score)

Keep an eye on your credit report and credit score to make sure everything is on track.

You can access a free credit report from the three main credit bureaus each year using annualcreditreport.com, or you can use a credit reporting company to do it for you. You can also monitor your credit score using apps like Credit Karma or CreditWise.

If you see a discrepancy on your credit report, work with your creditor or the credit bureau to get it removed, which can boost your score. Tracking your credit score helps you see if the moves you are making are actually helping.

4. Don’t close your oldest account

Credit history can have a big impact on your score, and while the average age of credit is measured, the credit bureaus also consider your oldest account. For example, if you have an old credit card that gets closed, this can hurt your score. Consider keeping your oldest account open to help increase your age of credit.

5. Consider your credit mix

If you don’t have many bills or credit accounts, this can negatively impact your credit score. Creditors want to see that you can successfully manage multiple types of accounts. Consider opening a credit line or credit card if you don’t have one — but remember to manage it well to increase your score.

A ConsumerAffairs reviewer in Idaho said that even though they had very little debt, there was no upward movement of their mid-600s credit score. “I was very adverse to starting new credit,” he said. “Opening a few accounts, using them very judiciously and paying them off monthly would not only increase my credit score, but help me match accounts that offer bonuses to expenses I already had.”

Bottom line

Excellent credit means having a FICO score of 800 or above, or a VantageScore of 781 or above. Having excellent credit can help you qualify for better rates and terms on loans or qualify for better credit cards.

It’s important to monitor your score and review your credit reports on a regular basis. Making payments on time and managing your credit wisely can make it more likely that you’ll reach an excellent credit score.