840 credit score: What it means

If you have a credit score of 840, that means you have an exceptional credit score. According to a report by FICO, only 23% of the population has a credit score of 800 or above. That makes you part of a select group of people with excellent credit. You should be proud of your high credit score and use it to your advantage.

Let’s get started to understand what it means, why 840 credit score helps and how to get one.

There are several benefits that come with having excellent credit score, and the good news is that you don’t need a perfect 850 score to start enjoying them. Just getting your credit score over 840, which is officially considered excellent, gives you the same advantages and benefits as a perfect score.

When you have an 840 credit score, you’ve done everything you need to do to prove that you are a responsible borrower. Banks and credit card issuers will be eager to loan you money, often at very favorable terms. People with 800+ credit rarely hear the word “no,” whether they’re asking for a mortgage preapproval letter or turning in a rental application.

How to improve your credit score

Although a FICO® score of 840 is already excellent, there may still be room for improvement. More importantly, your score is on the lower end of the exceptional range and fairly close to the Very Good credit score range (740-799). Although a very good score is nothing to worry about, staying in the Exceptional range can mean better chances of approval for the best credit offers. Therefore, it's worth taking steps to try to improve your credit score even more.

It's important to keep your credit utilization rate at or below 30%. This is the percentage of your credit limit that you're using, and experts agree that if you keep your utilization rate below 30% on all of your accounts, you'll avoid lowering your credit score. So if you have a credit limit of $1,000, you should aim to keep your balance below $300. This will help you maintain a good credit score and access to credit in the future.

Having a long credit history is one of the most important factors in maintaining a high credit score. If everything else stays the same, a longer credit history will always result in a higher score than a shorter one. So if you want to keep your score high, it's important to keep your oldest lines of credit open and active.

Although new credit accounts may cause your credit score to dip in the short term, it will typically rebound within a few months as long as you make all your payments on time. New credit activity can actually contribute up to 10% of your overall credit score. So don't let a short-term negative effect discourage you from opening new lines of credit.

840 Credit Score: What does it mean to have it?

An 840 FICO score indicates an excellent credit history. There are no missed payments or credit utilization issues to drag down your score from its exceptional ranking. You've likely been using credit successfully for many years, and probably have a healthy mix of credit accounts that includes both revolving credit (like credit cards) and installment credit (like a mortgage). Having a strong credit history like this can open up a lot of opportunities – so make sure you keep up the good work!

This is why you should be happy with your exceptional credit score

Having an Exceptional credit score means you have a long history of managing your credit well. Your record of on-time bill payments and handling of debt shows that you are a responsible borrower.

Banks and credit card issuers view people with Exceptional credit scores as attractive customers and offer them their best lending terms. This may include opportunities to refinance older loans at better rates than in the past, and excellent odds of approval for credit cards with premium rewards programs and the lowest-available interest rates.

What does a 840 credit score get you?

Credit Cards For 840 Credit Score

The benefits of exceptional credit score

Higher credit limits

When you have a high credit score, you will likely gain access to higher credit limits. This increases your purchasing power. Not only does having a higher credit limit improve your purchasing power, but it also makes it easier to maintain a low credit utilization ratio—which is beneficial for sustaining a high credit score.

Another advantage of having high credit limits is that it helps you keep your credit utilization ratio low. As mentioned before, a low credit utilization ratio is key to sustaining an excellent credit score.

Better credit offers

One of the best things about having an 840 credit score is that you'll have access to better credit offers. With such a high credit score, you'll be able to qualify for all of today's best credit cards, including those designed for people with excellent credit.

People with a credit score over 840 are also likely to be approved for other types of loans, like personal loans, mortgages, and car loans. Not only will most banks and lenders be eager to loan money to someone with a near-perfect credit score, but the terms of the loan will often be more favorable than what's offered to people with lower credit scores.

Better credit approval odds

If you're concerned about your credit score, it may help to know that an 840 credit score is likely to exceed any lender's minimum credit score requirements. As long as you meet other eligibility requirements, like income and employment stability, you have a very good chance of being approved for the loan or credit card you're applying for.

Lower interest rates

If you have an excellent credit score, you can reap many benefits – including lower interest rates. In fact, you may be offered interest rates that are significantly below the national average. This can save you a lot of money over time, especially if you take out a long-term loan with a low fixed interest rate (e.g., a 30-year mortgage).

Low-interest rates can save you hundreds – or even thousands – of dollars on mortgages, car loans, credit card balances, and personal loans. So if you have a good credit score, make sure you take advantage of this great perk!

Better insurance rates

If your state allows it, your insurance provider may take your credit score into account when calculating your insurance premium. Having a good credit score could help you get a lower premium on your homeowners or auto insurance. So if you have a near-perfect credit score, make sure to ask your insurance provider if they consider it when calculating premiums.

How to get an 840 Credit Score

It's important to pay your bills on time if you want to show lenders that you're responsible. Payment history is the most important factor when it comes to your credit score, so make sure you're always paying on time. If you do miss a payment, don't worry - you can correct the mistake and avoid any negative consequences. Usually, lenders won't report missed payments to the credit bureaus until they're 30 days past due, so as long as you pay before then, you'll be fine.

Adding an additional credit account to your portfolio can be beneficial, especially if it's a type of credit you don't already have. For example, if you only have installment loans, like a car loan or a personal loan, adding a new credit card can help diversify your credit mix, which determines 10% of your credit score. Additionally, by adding to your credit limit, you may also reduce your overall credit utilization ratio.

Monitoring your credit score is important in order to maintain a good credit history. There are many credit monitoring services that will provide you with an updated credit score on a weekly basis, as well as an analysis of why your score might have changed. It is beneficial to learn what factors will raise your score and avoid anything that might lower your credit score. By doing this, you can maintain a good credit history and avoid any negative impact on your credit score.

If you want to avoid harming your credit score, it's important to keep your credit utilization ratio below 30%.

It's a good idea to review your credit reports with the three credit bureaus (Equifax, Experian, and TransUnion). Believe it or not, millions of Americans have errors on their credit reports—and those errors could inadvertently lower your credit score.

Make sure all the information on your credit reports is accurate and learn how to dispute credit report errors with the credit bureaus. This way, you can help ensure that your credit score is as high as it should be.