My Credit Score Is Over 780. Here Are 4 Ways It's Saved Me Money
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I don't have a perfect credit score. The FICO scoring model tops out at a "perfect" score of 850, and the closest I've ever come to it is around 810. As of mid-2024, my score is in the upper 700s.One important thing for all American consumers to understand is that you don't need perfect credit to save money on loans, get whatever credit cards you want, and reap the other benefits of having strong credit.In fact, if you have a credit score above 780, you're generally considered to be in the top tier for all practical purposes. With that in mind, here's how my strong, but not perfect, credit score has saved me money.It made buying a home much cheaper (and easier)To be sure, mortgage rates have risen quite a bit since I obtained a mortgage on my home (we refinanced in late 2020). However, a good credit score makes a big difference.The average mortgage rate in the United States when I refinanced was about 3.5%, and I was able to get a rate of 3.375%. This might not sound like a big deal, but this seemingly small difference saves my family $336 per year on interest (or more than $10,000 over the 30-year term).It lets me take advantage of the best credit card offersHere at The Ascent, we keep a close eye on the credit card industry and know when a great credit card offer pops onto the market. Maybe there's a lucrative cash back offer after spending a certain amount, or maybe applicants can earn a high number of frequent flyer miles for getting a new card.The top credit card offers are typically only available to consumers whose credit is significantly above average. So, by having a high credit score, I never have to worry about getting approved if I apply to take advantage of an offer.Promotional financing on auto loansThe "0% financing" deals on auto loans have started to make a comeback after a few years where they became very difficult to find. But it isn't uncommon for vehicle manufacturers to offer no-interest financing on new vehicles, as well as great lease deals, especially as we get towards the end of the model year.However, these offers typically require the customer to fall into an upper credit tier. For example, Nissan is currently offering 0.0% APR financing for 36 months on certain vehicles, but the offer clearly states that it's "For Well-Qualified Buyers who finance with NMAC."The last time I bought a vehicle was 2018, but when I did, I was able to take advantage of a promotional financing deal. This ensured that nearly all the money I paid was going to pay down the principal.Cheaper insuranceThere is some debate over whether auto insurers should consider credit scores of applicants, but the reality is that numerous studies have found a clear correlation between a consumer's credit score and the likelihood that the insurance company will have to pay for a claim. In other words, higher-score customers represent a lower risk to the insurer.Therefore, insurance companies incorporate credit scores into their pricing models. One study found that drivers with average credit pay about 26% more than drivers with excellent credit.To be fair, I have no way to know exactly how much my insurance would be if my credit score were lower. But both my wife and I have scores well into the "excellent" range, and our premiums are significantly lower than the average person in our state pays.Just a few examplesThis isn't an exhaustive list of the benefits of having good credit. There are other ways that I've saved money over the years because of it. And it's also worth noting that it isn't just about saving money -- there's a certain peace of mind that comes with not needing to worry if I'll be approved for a loan when I'm sitting in a car dealership or when I fill out an auto insurance application.Alert: highest cash back card we've seen now has 0% intro APR until nearly 2026
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