Is 862 a Good Credit Score? Understanding Credit Score Ranges and What 862 Means

Your credit score is one of the most important numbers in your financial life. It impacts your ability to get approved for loans and credit cards as well as the interest rates and terms you’ll receive. So where does an 862 credit score fall? Is 862 a good credit score?

In this comprehensive guide, we’ll explain what makes a credit score “good” versus “excellent” or “poor.” You’ll learn the credit score ranges for the most common scoring models, FICO® and VantageScore®. We’ll also discuss the factors that make up your scores, plus tips to maintain or improve your number

What Credit Score Ranges Mean

Credit scores generally fall on a scale of 300 to 850 The most well-known credit scores — FICO® and VantageScore® — use this range

Within that broader range, your score falls into one of several categories:

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

So where does 862 land? With a score of 862, you’re firmly in the “exceptional” credit category. Less than 1% of people have credit scores above 850.

FICO® Score Ranges

For FICO® Scores specifically, the score ranges are:

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

This is the most common scale used for credit scores because 90% of lending decisions are based on them.

VantageScore® Ranges

VantageScore® uses the same overall 300 to 850 range. But its “good” score band is slightly wider:

• Poor: 300 to 599
• Fair: 600 to 660
• Good: 661 to 780
• Very Good: 781 to 850

So while 862 is exceptional on the FICO® scale, it’s “very good” for VantageScore®.

Is 862 a Good Credit Score?

An 862 credit score is, by any measure, a great credit score. It is right at the top of the “exceptional” range on the FICO® scale.

862 is a “very good” score on VantageScore®, just below the “exceptional” band. It’s still pretty high, though.

Lenders will view a borrower with a score of 862 as low-risk and likely to repay debts responsibly. You can expect easy approvals for credit and the best possible loan terms if your score is 862.

What Does an 862 Credit Score Get You?

A credit score as high as 862 unlocks key financial benefits, including:

• Lower interest rates: With an 862 score, you’ll qualify for the lowest rates on loans and credit cards. Even a small rate reduction saves substantially over the life of a mortgage or auto loan.

• Higher credit limits: Exceptional scores increase approval odds for top-tier credit cards with generous credit limits. This provides greater spending flexibility.

• Special offers: Card issuers extend exclusive rewards and benefits to borrowers with scores above 800. You may get access to luxury travel perks, bonus cash back, or other elite rewards.

• Improved loan terms: In addition to rock-bottom interest rates, a high credit score can lead to skipped down payments or reduced fees when you apply for a mortgage, car loan, or personal loan.

• Premium rental terms: Landlords may offer priority approval and discounted deposits/fees to prospective tenants with very high credit scores.

What Helps Your Credit Score? Key Factors

Credit scores consider five main factors from your credit reports. Improving these areas is key to boosting your number:

• Payment history: The biggest factor, making on-time payments builds your score. Missed or late payments damage it.

• Credit utilization: Keeping balances low compared to credit limits helps. Maxing out cards hurts.

• Credit age: Long, well-established accounts aid your score. Too many new accounts lower it.

• Credit mix: Managing different types of credit (cards, loans, etc.) responsibly boosts your score.

• New credit: Rate of new applications and accounts impacts your score. Too many is negative.

Tips to Maintain an Excellent 862 Credit Score

Reaching a top-tier credit score takes time and diligent money management. But keeping it high comes down to sticking with the same responsible habits:

• Always pay bills on time. Even a single 30-day late payment can drop your scores. Set up autopay or reminders to avoid missed payments.

• Keep balances low. Shoot for a credit utilization rate below 30%, paying off cards monthly if possible.

• Don’t close old accounts. Having established, long-open accounts helps your credit history.

• Mix up your credit types. Manage a healthy mix of installment loans and revolving credit cards.

• Limit hard inquiries. Each credit application causes a hard inquiry, which could slightly lower your scores. Only apply for new credit selectively.

• Monitor your credit. Review reports regularly for errors or signs of fraud that could hurt your score. Dispute any issues promptly.

How Long Does It Take to Reach an 862 Credit Score?

For most people, it takes years of smart credit management to reach a score over 800. You’ll need a long history of on-time payments, low debt usage, and diverse account types. But with diligence, an 862 score is an achievable goal over time.

New credit users should begin by:

• Making on-time payments each month
• Keeping new credit applications to a minimum
• Using credit cards responsibly, with low balances
• Building credit history with a mix of installment loans and revolving accounts

With consistent, responsible habits, your score can reach the 800s within just a few years. An 862 credit score demonstrates long-term dedication to flawless money management.

Is There Room for Improvement from an 862 Score?

While an 862 credit score is exceptional, there may still be a bit of room for improvement:

• Increasing your total credit limits to lower your utilization ratio
• Letting existing accounts age longer to thicken your credit history
• Managing new types of credit, like large installment loans
• Maintaining your perfect payment record over many more years

Realistically though, once you’re above 800, small score gains likely won’t impact your loan terms much. Lenders already view you as an ideal borrower. Focus instead on upholding your current healthy habits.

The Takeaway: 862 Is an Excellent Credit Score

While it’s possible to inch higher, an 862 score already qualifies you for the best loans and credit card offers. Work on maintaining your existing positive habits to keep your score high. An 862 credit score is an impressive financial achievement to be proud of.