Why I’m Better Than 87% of You
Last night I got my credit score for the first time: 807.
That basically means I kick ass, but let’s have the chart do the talking:
According to this very official-looking chart, I’m 87% better than everyone else. It reflects that I have zero debt, pay my credit card in full every month, and in general am an all around rock star.
But what else goes into a credit score?
My payment history is spotless: in my 11 years of having a credit card I have paid about $40 in finance charges—all due to mixups. I normally pay the whole balance off every month.
I don’t owe anything so I got that 30% aced.
Not sure how types of credit is scored, but I’ve had my current card for quite a while.
I haven’t taken out any new credit in a few years, so that’s A-OK.
What Does it All Mean?
It means I’ve been doing a good job of keeping my finances in order. The satisfying thing about knowing you have such a high score is that all the hard work, all the saving, the budgeting, the resisting of all the consumer temptations that are out there (most of them, anyway), and the obsessing about seemingly trivial things like joint bank accounts—it has all been worth it.
In exchange for resisting all the temptation and staying disciplined with our money (M’s came in at 795, which means she’s better than most you too), we now get a slight advantage in trying to get a mortgage.
Why? Because that one number tells lenders something VERY important: that I will most likely not default on my mortgage (knock on wood):
According to the chart, there is a 1% chance someone with my score will default. That means it’ll be easier for me to get a mortgage and I’ll get a more favorable rate, which means I get so save thousands of dollars over the life of my loan.
So when all you budgeters and savers go out into the world this Friday and see all those people shopping away—buying things they don’t need and can’t afford—try to find some solace in knowing that you’ll always be better than them.
November 24th, 2009 at 9:36 am
Wow! I’ve never seen someone with higher than an 800 FICO score before, well done!
You should now leverage your self and buy that house! But, don’t forget to have 30% of the value of the house saved up before you buy.
Gluck!
January 16th, 2010 at 6:01 pm
Did you notice that “Type of Credit in Use” is on the pie chart twice? Is there a difference between the two? If so, what is it?
Thanks in advance.
May 4th, 2010 at 6:38 am
[...] Your credit score says a lot about you: how responsible you are, how fiscally fit you are, and how intelligent you are as a human being. OK maybe that last one is a stretch, but I might be right—I do have a very high credit score. [...]
May 11th, 2011 at 7:18 am
Great post! There are multiple ways of improving your 807 credit score. The simplest one is to wait for some time without taking new loans and paying old ones on time. It also makes sense to pay out credit cards every month and don’t max out them. Make sure that you don’t get any issues with collections and try to prevent your bills from going to collection by all means. If based on your 807 credit score bank gives you a rate which is way to high try to save more cash for downpayment to avoid getting loan which isn’t affordable.