If you’re looking to borrow money from the bank and other financial institutions, you must realize that having a healthy credit score of 850 will make it more easier than approaching a bank with an epileptic credit score of 200 – 350.
Though it’s not easy to keep a credit score of 850 but it’s definitely possible. It’s nothing more than a vanity number, Alden said. “Anything over 800 is just a bonus and likely won’t result in better lending rates or other perks.” The reason is that most lenders sees figure over about 780 to 800 as “excellent,” so when you have over 800 and above score, it puts you comfortably in the top list.
Alden further said, “That being said, even a high 800+ score can sometimes fail to qualify you for the best rates,”
How you may wonder. It’s simple. Let me explain, say you’ve never taken an auto loan before. If you apply for an auto loan now even with a score of 800 and above, you’ll definitely receive the second-best lending rate on an auto loan, because you do not have a track record in auto loan.
It completely depends on your lender to decide on what exactly happens, meanwhile, your credit score is only a part of your bigger financial image that gets scrutiny whenever you file for a loan in any financial institution.
If your 850 score gives you much confidence that you don’t see you queuing at all, good luck, just go ahead, after all there’s no harm in trying. “Just know that you might be waiting a while,” Allec said.
Your chances to get the loan would be wider if you have borrowed before yet maintained 800 or above credit score.
Source: Consumer alert, huffpost