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Obsession with the Perfect Credit Score

improve-bad-credit-ratingWhen it comes to credit many people apparently are not satisfied with having a great credit score or an excellent credit score. Instead, some will settle for nothing less than a perfect credit score.  So while having an 800 FICO score would make the vast majority of Americans extremely happy, especially considering the fact that the average credit score is currently below 700, a small sliver of the American population is nevertheless determined to obtain the rare 850 FICO.

One of the problems with trying to get a perfect credit score is that the steps involved may actually cause your credit score to decrease.  This is because the credit bureaus never offer exact information on how performing one credit score boosting maneuver or another will actually affect your score.  This lack of transparency, which has been put in place on purpose, means that some people who attempt to boost their scores will wind up seeing it go down instead.

Another issue revolves around the utility of having a perfect credit score as opposed to an excellent credit score – for example 780. In reality there’s very little difference between a 780 and 850 credit score when it comes to obtaining a loan, as banks usually use lending guidelines which determine interest rates and loan values based on credit score ranges. Usually a 780 credit score would fall in the top range of the bank’s lending policies, hence no additional consideration is likely to be afforded to a score which is higher.

Despite the fact that there may be no actual benefit to having a perfect credit score, there are still people who have made it a goal to achieve it. The one financially legitimate reason for looking to boost an already excellent credit score is if you expect the score to take a hit in the near future, for example as a result of charging credit card balances over the optimal 50% threshold.

For more from Forbes, click here.

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