is 846 a good credit score

Title Is 846 a Good Credit Score? Understanding this Top-Tier Score

Having a good credit score is important for getting approved for loans and credit cards with the best terms. But what exactly constitutes a “good” score? And is there such a thing as having too high of a score? Let’s take a closer look at credit scores, specifically focusing on whether 846 can be considered a good credit score.

What is a Credit Score?

A credit score is a three-digit number that is based on what is in your credit report. It shows how creditworthy you are and lets lenders quickly figure out how likely you are to pay back debt.

The most commonly used credit scoring model is FICO®, with scores ranging from 300 to 850. According to Experian data, the average FICO® score in the U.S. is 714. Most scores fall within the range of 600 to 750.

Higher scores indicate lower credit risk. Someone with a very high score is seen as extremely reliable and trustworthy when it comes to borrowing and repaying money.

FICO® Score Ranges

FICO® groups credit scores into the following ranges:

• 800-850: Exceptional
• 740-799: Very Good
• 670-739: Good
• 580-669: Fair
• 300-579: Poor

Scores of 720 and above are generally considered excellent, while anything under 580 is seen as quite bad. But there are also more narrow categorizations within the “exceptional” range.

Is 846 a Good Credit Score?

A FICO® score of 846 falls squarely within the “exceptional” credit score range. It is 36 points shy of the maximum score of 850. So yes, 846 is undoubtedly an excellent credit score.

In fact, an 846 FICO® score is nearly perfect. According to Experian, less than 1% of people with exceptional credit scores go on to experience serious delinquency. This means the probability of you missing payments or defaulting on debt is extremely low if your score is 846.

Benefits of an 846 Credit Score

A credit score of 846 qualifies you for the very best loan terms and lowest interest rates from lenders. Specific benefits include:

• Easy approval for new credit cards and loans
• Lower interest rates on mortgages, auto loans, and personal loans
• Higher credit limits on new credit cards
• Excellent offers and rewards programs from credit card companies
• Lower insurance premiums in some cases

As long as your score is in the 800s, you should be able to get almost anything. Of course, things like your income and debts still matter. But because your credit score is almost perfect, lenders will do anything to give you the best deals.

One real-world example: the average interest rate for a 30-year fixed mortgage was around 7% in late 2022. But borrowers with credit scores above 760 paid average rates of just 6.58% according to FICO®. That’s a significant savings over 30 years on a large mortgage loan.

How to Get an 846 Credit Score

Very few people have credit scores in the 800s. According to WalletHub data, only about 15% of Americans reach this top tier. If you’re not already in the 800+ club, here are some tips for getting there:

• Always pay bills on time – Payment history has the biggest impact on your score. Even one late payment can drop your score significantly. Set up autopay on loans to avoid slip ups.

• Maintain a low credit utilization rate, which means using no more than 10% of your total available credit limits across all credits. Staying under 10% is even better.

• Let credit age – Having long, established accounts on your report helps your score. Keep old cards open unless they have an annual fee.

• Limit new applications – Too many hard inquiries from applying for new credit can lower your score temporarily. Only apply for what you need.

• Watch your credit—Keep an eye on your credit reports and FICO® score so you can quickly fix any mistakes or bad things that show up.

With diligent credit management over time, you can reach and maintain a score over 800. Getting those last few points to 850 takes extreme discipline, but usually isn’t worth the effort for most people.

Is an 850 Credit Score Necessary?

Now you might be wondering, if 846 is nearly perfect, is it worth trying to inch up to the maximum score of 850? The short answer is no – an 850 provides minimal practical benefit for most borrowers over an 846.

According to credit experts, once you’re in the 800+ range, you already qualify for the best possible loan terms and interest rates. There is little room for improvement. The difference between 846 and 850 is minor from a lender’s perspective.

Reaching 850 requires flawless credit management – no missed payments ever, utilization under 5-10% on all accounts, and minimal new credit applications over many years. It takes tremendous discipline. For most people, the extra effort isn’t worthwhile.

An 846 credit score already gets you into the top tier of borrowers. Higher than that is generally just bragging rights. Maintaining your score in the 800s is what matters most.

The Bottom Line

A FICO® score of 846 clearly indicates exceptional credit. It is near the top of the scoring range and qualifies you for the very best loan terms from any lender. Reaching 850 might not be realistic or provide any practical benefits for most people. Focus instead on keeping your score firmly in the 800+ “exceptional” category. By continually practicing good credit habits, an 846 score is sustainable for the long run.