You might be one of those folks gunning to boost your FICO score from 760 to a spotless credit rating of 800 or more. You might be doing so to get better interest rates on mortgages or better perks from the elite credit cards.
Greg McBride, a senior analyst at Bankrate.com, says that this is a pursuit not worth undertaking.
Increasing your score from 760 to 800+ involves a lot of opening and using new credit while paying the interest rates at the same time, but the practical rewards are not quite as lucrative as you might think. McBride points out that a consumer will see very little difference between a score of 760 and a score of 800, and actually getting a score of 800-plus is just not worth the effort.
“It’s a lot more difficult to move the score up in any noticeable way, and little reward,” he says.
Here’s a comparison: a $300,000 30-year fixed mortgage will get you a 3.62% interest rate ($1,368 a month) if you have a credit score of 760 and above. The same mortgage will get you 3.85% ($1,406) if you have a score between 700 and 759. That’s a difference of $38 a month or $1,140 over the course of 30 years.
All this number crunching is useless, however, if all you are aiming for bragging rights with a score of 800 or more – something entirely different from what we’re talking about here.