Why I Don’t Obsess Over My Less-Than-Perfect Credit Score

Why I Don’t Obsess Over My Less-Than-Perfect Credit Score
BLOG
Stefanie O'Connell
By: Stefanie O'Connell
Posted: May 16, 2014
Experts share their tips and advice daily on BadCredit.org, helping subprime consumers navigate the world of personal finance.

I have a 767 credit score. With a perfect score being 850, there’s obviously room for improvement, but I’m not too concerned about it.

Here’s why:

1. It’s a bracket system

It’s a bracket system

While having a great credit score allows you to secure the best deals on interest rates and qualifies you for the best perks, the system is arranged by score ranges rather than specific scores.

As long as you fall in the top bracket (760 to 850), it doesn’t much matter if you’ve got a 767 or the perfect 850.

2. I want those new-card rewards

I want those new-card rewards

When you apply for new credit, your report receives a hard inquiry which can slightly and temporarily lower your credit score.

That means every time you sign up for a new credit card to get that instant 10 percent off at the store, get that $100 cash back deal from the bank or claim any other form of sign up bonus, your score is affected.

I’m not going to let the pursuit of a perfect 850 credit score keep me from claiming hundreds of dollars worth of cash back, miles and other forms of credit card rewards.

As long as I keep my new credit applications far enough apart to keep me in the top bracket, I have no qualms about sustaining a temporary reduction to my score.

3. I have good financial habits

I have good financial habits

Just because I say I don’t care about having a perfect credit score doesn’t mean I’m about to default on my bills. I know I’ve laid the groundwork for responsible money management over the years, so the important habits of paying my bills on time and in full are already in place.

As long as I continue to practice my good financial behavior, my credit score should be in good shape.

At 767, I’m on the cusp of the top credit score bracket.

As long as I stay above the 760 mark by keeping my credit utilization low, my credit inquiries sufficiently spaced apart and my good financial habits in practice, I don’t see any reason to stress out about being less than a perfect 850.

Photo credits: Wikimedia Commons, Flickr/Simon Cunningham, 401(K) 2012, Ken Teegardin; Pixabay