Explore the Best Credit Cards for Excellent Credit Scores

#

What Is an Excellent Credit Score?

An “excellent” credit score varies depending on the scoring model you use. Both FICO and VantageScore – the two most popular scoring models – have slightly different calculations for what is a good score and what they consider excellent or fair.

FICO Score

The FICO scoring model is the most popular credit scoring model with banks. The FICO scoring range is from 350 to 850, and breaks down as follows:

• Excellent: 850 – 800
• Very Good: 799 – 740
• Good: 739 – 670
• Fair: 669 – 580
• Poor/Bad: 579 -350

VantageScore

VantageScore, like FICO, also measures the creditworthiness and reliability of potential applicants. While less popular than FICO, VantageScore is the creation of the three major credit bureaus: Equifax, Experian, and TransUnion. The VantageScore model ranges from 300 to 850, and breaks down as follows:

• Excellent: 850 – 781
• Good: 780 – 661
• Fair: 660 – 601
• Poor/Bad: 600 – 500
• Very Poor/ Very Bad: 499 – 300

The Benefits of an Excellent Credit Score

People with excellent credit qualify for the very best credit card offers. Not only do you have access to the cards that those with good credit scores can get – you also get access to ultra-premium cards that only the best credit scores can receive.

Excellent credit scores get the best variable APR interest rates on credit cards, the best signup bonuses, and the lengthiest 05 intro APR periods on new card accounts.

Other perks of excellent credit cards include:

• Access to all rewards credit cards
• The very best bonuses on rewards and cash back cards
• The lowest APR

Beyond credit cards, and an excellent score means you’ll qualify for the best mortgage rates and terms. You’ll also pay less on interest for car loans, personal loans, and business loans.

How to Get an Excellent Credit Score

Getting the best credit scores requires patience and hard work. An excellent credit score doesn’t happen overnight. Instead, it takes years of good financial habits.

The easiest way to build an excellent credit score is to follow these three simple steps:

Pay Your Credit Card Statement in Full

Paying your credit card bill in full every month keeps your credit utilization low. Credit utilization accounts for almost a third of your credit score, so keeping it as low as possible is crucial.

To maintain your credit score, keeping credit use under 30% is required. For those seeking a higher credit score, however, reducing your credit use even further is essential. The fastest results come from keeping credit utilization below 10% – and paying your bill in full ensures you easily reach this goal.

Pay On-Time Each Month

Payment history is the biggest factor in your credit score. Both VantageScore and FICO place the greatest emphasis on your history of making payments. Pay your bills on time, and your score will rise. Pay even one bill late, and your score could drop—the easiest way to keep a record of on-time payments is to set up autopay on your accounts.

Avoid Opening Too Many New Accounts

Opening new accounts usually result in a hard inquiry on your credit report. Too many of those in a short period can make lenders wary. Too many hard inquiries can make you appear financially stretched and that you need credit to cover too many expenses.

Hard inquiries differ from soft inquiries, which don’t appear on your credit report. These soft inquiries (or soft pulls) are what happens when you check your credit score with free apps.

New credit doesn’t have a significant impact on your credit score, but it is still advisable to limit your new applications to a few per year – at most. This can make you more attractive as an applicant to lenders – and raise your credit score.

How to Maintain an Excellent Credit Score

Maintaining your credit score requires the same hard work that building it does. Here are the best ways to maintain your excellent credit score once you earn it:

• Always Pay On-Time
• Keep Your Credit Utilization Low
• Limit New Credit Accounts and Applications

Another great way to maintain your credit score is to avoid closing old accounts. Closing accounts lowers the average age of your credit – and can reduce your score. The easiest way to maintain your score is too keep your accounts in good standing and active by making small purchases wherever possible.

Related Article: 5 Tips for Maintaining a Good Credit Score

What to Look for In Excellent Credit Cards

Excellent credit unlocks a variety of rewards and benefits not open to those with average credit – or even good credit. Here are some of the essential features to look at when deciding on your next credit card for excellent credit scores:

Low APR

Excellent credit means the best interest rates on credit cards and other loans. The average APR for someone with excellent credit is around 14.25%. This interest rate is an impressive 4% lower than the rate for those with good credit (18.25%) and approximately 12% lower than an applicant with fair credit. You may also qualify for lower balance transfer fees or no foreign transaction fees.

Luxurious Perks

The very best credit cards (and charge cards) come with the very best perks. Most of the top luxury credit cards offer travel benefits that far exceed their annual fees. These perks include hotel upgrades, dedicated concierge, lounge access, Global Entry or TSA statement credits, and more. The most famous of these luxurious cards is the Platinum Card from American Express.

Rewards

Since an excellent credit means the best card offers, it also means better rewards. Rewards come in the form of cash back, points, or miles and vary in value depending on the issuer. Before applying for your next credit card, always read the terms and conditions of the rewards program to see how you earn points (the rewards rate) – and how you redeem them.

Annual Fee

A good credit score opens the possibility of getting some of the best credit card offers available. Because of an excellent score, many applicants have access to cards with excellent rewards. These cards may – or may not – come with an annual fee.

What Are the Best Credit Cards for Excellent Credit of 2020?

Now that you know what to look out for, what are the best credit cards for excellent credit for 2020? With so many cards to choose from, it can be challenging to sort the great from the very best. Here are some of the top picks for excellent credit from the BestCards team:

• Marriott Bonvoy Brilliant™ American Express® Card – Best Hotel Card
• Chase Sapphire Reserve® – Best Travel Credit Card
• Mastercard® Black Card™ – Best Luxury Credit Card
• U.S. Bank Altitude® Go Visa Signature® Card – Best No Annual Fee Card
• Upgrade Card – Best Credit Card for Paying Down Balances
• JetBlue Card – Best No Annual Fee Airline Card
• United Club℠ Infinite Card – Best Airline Credit Card
• Odyssey Rewards World Elite Mastercard – Best No Foreign Transaction Fees Card
• Amazon Business Prime American Express Card – Best Small Business Credit Card

More of the Best Of Credit Cards

What Are the Best Travel Cards?

In the travel credit card space, the more lavish offers are usually the winners. Though they have considerably higher annual fees, premium travel cards are full of benefits and perks. There are even attributes that can help reduce the overall cost of the annual fee. Recent years have seen stiffer competition for the top of the totem pole, but established names like American Express and Chase still rule.

Continue Reading

What Are the Best Cash Back Credit Cards?

Cash back credit cards are the most popular kind of rewards card , and it’s easy to see why. Cash is versatile, practical, and straightforward to use, requiring far less fuss than what other types of rewards cards might warrant.

Continue Reading

What Are the Best Luxury Cards?

Luxury cards are the most sought-after breed in the credit card world. They offer the kind of VIP experiences you dream about but that comes with a hefty price tag. Cardholders have access to exclusive airport lounges, complimentary upgrades, in-flight bonuses, shortcuts through security, and so much more. But are luxury cards worth it? And which cards are the crème de la crème? 

Continue Reading

FAQs About Excellent Credit Scores

Excellent credit scores are something most consumers strive for. Unfortunately, not everyone can have a credit score over 800. Here are some of the most frequently asked questions concerning excellent credit. Who knows, maybe these tips will help you raise your score from “good” to “excellent.”

How many people have a credit score over 800?

• A credit score over 800 is considered “excellent” by both FICO and VantageScore. According to Experian, one of the major credit bureaus, approximately 20% of Americans have a credit score over 800.

Is it possible to have a perfect credit score?

• A perfect credit score of 850 is possible – but not practical. Having a credit score of 850 means you have the very best credit, but the costs outweigh the benefits, For example, a great credit score means you get the best rates on loans – like credit cards. Why waste this advantage for a perfect score?

What is the average credit score in the United States?

• According to Experian, the average credit score in the U.S. is 704. This means the average American has good credit.

What does an 800 credit score get you?

• An 800 credit score, or excellent score, gets you the best interest rates for things from mortgages, auto loans, and credit cards.

Can you get a credit score of 900?

• Both VantageScore and FICO only go up to 850.

What factor is most important in your credit score?

• Payment history. Payment history is the number one factor in both FICO and VantageScore scoring models.

How Our Team Selects the Best Cards for You

The team at BestCards.com knows how hard it can be to find the perfect credit card, especially without the right tools or knowledge. That’s why we strive to provide insightful credit card reviews, plus informative articles, and advice to guide you

Our team of industry experts uses a precise methodology to help determine the merits – and drawbacks of every card we feature.

These factors include things like the annual fee, the APR a card features (variable or fixed), the rewards on offer, and more. For a complete rundown of our review process, check out our Credit Card Review Methodology page. Here are a few bits of information to give you some insight:

Interest Rates

Most cards feature a variable APR, meaning the rate will vary depending on two factors. These factors are the creditworthiness of the applicant and the Prime Rate (or the rate at which the Federal Reserve charges banks to borrow money). Other cards, especially secured cards, have a fixed-rate APR, meaning the APR won’t change. BestCards emphasizes APR when evaluating a credit card because it is something many overlook.

Fees

“Fees” is a broad term that applies to a variety of different charges associated with an account. Many people see fees and think about the annual fee. But there are far more fees that go overlooked, including:

• Balance transfer fees
• Cash advance fees
• Over-the-limit fees
• Returned payment fees
• Foreign transaction fees
• Late payment fees

These are just some of the fees that come with many credit cards. Our team focuses on the likelihood a cardholder will encounter a fee, and how much this fee will impact their cardholder experience.

Perks and Rewards

Perks and benefits of card membership are also basic categories for evaluating the overall value a credit card offer provides. Similarly, rewards are benefits that come from purchases or signup bonuses.

One of the most important considerations when reviewing a rewards card is the value of the points on offer. Since the precise value of points or miles varies depending on the award options, our team carefully considers who each card appeals to – and how they can get the most value from their rewards.

The same process applies for perks and other benefits. Is the card designed for a frequent business traveler? Does the card work for a family of four? What is the card like to live with every day? These are examples of questions the BestCards team considers when analyzing a new offer.

Credit Required

Excellent rewards and impressive perks don’t mean a thing if you won’t be approved. While those with excellent credit scores don’t need to worry, the average American only has a credit score of 704. Our team focuses on who these cards are aimed at – and who can expect to apply for – and get – them. After all, a credit application results in a hard inquiry, which can lower your credit score.

Find Your Best Card Today

Know that you know everything you need to find your perfect credit card, what are you waiting for? Take advantage of these resources and more to find your ideal credit card today!