4 Reasons I Worked Hard to Earn an 810 Credit Score

A good credit score also helps me keep my insurance premiums as low as possible.

My credit score is somewhere around 810, although it can vary a little here and there depending on my current credit card balance reported to the credit reporting agencies. Since the credit score scale only goes up to 850, that's a pretty great score.

It's not an accident that I have excellent credit -- I've worked hard to get it. And there are a few key reasons why I made the effort.

1. I want to be able to borrow affordably

The most important reason to earn good credit is to be able to access affordable financing. See, there are times when you most likely have to borrow money -- like if you're buying a home. And the costs of a mortgage can be profoundly impacted by your credit score.

In fact, as of July 31, 2023, the average interest rate for a 30-year fixed-rate mortgage is 6.561% if your credit score is above 760. But if your score is in the 700 to 759 range, it's 6.783%.

Those with the higher scores would have monthly payments of just $1,908 per month on a $300,000 loan, compared with $1,952 for people in the 700 to 759 range. And for people with even lower scores, like 620 to 639, the national average mortgage rate is 8.150%, and the monthly payment jumps all the way to $2,233.

Being able to borrow affordably is really important, as a lower monthly payment on big loans will leave you a lot more money for other financial goals. Even if you aren't buying a house, this could still matter for things like car loans, so it's absolutely worth trying to work hard to earn a good score.

2. I want access to the best credit cards

There are many credit cards that offer amazing rewards programs that provide generous cash back and other great perks like low rates for balance transfers. But, you usually have to have good credit to get the best credit cards. For example, The Ascent's 2023 Award Winner -- the Wells Fargo Active Cash® Card -- typically requires you to have either good or excellent credit.

If you want to be approved for the most competitive rewards cards, you should aim to work hard for a good credit score. Since I do things like pay my bills on time and manage my debt well, I have my pick of cards and can get several that match my spending patterns.

3. I want low insurance premiums

Insurers also consider your credit record, and a desire to pay low premiums was one more reason why I made an effort to get an 810 credit score. It could cost as much as 72% more to get insurance with bad credit compared with good credit. That's a lot of extra money I can now use for better things.

Most people need at least auto insurance and typically also home and renters insurance, so this is another reason everyone should aim to improve their credit.

4. I want other companies to trust I'll pay as promised

Finally, many other companies check credit as well, including cellphone companies, utility providers, and landlords. I want anyone who checks my credit to trust that I'm a good person to do business with and to offer low deposits and customer-friendly terms because of it.

If you also want all the benefits of good credit, the good news is there are things you can do to try to earn a great score over time too. Paying all your bills on time, maintaining a low credit utilization ratio (below 30%), not applying for too much credit at once, having a mix of different kinds of credit, and avoiding closing old credit card accounts are all steps you can take.

It takes time to build a great credit score, but you can get started today by simply committing to make all your payments on time and committing to repay your debt if your utilization rate is too high. If you start working on these two things, your credit should improve steadily until you get the best rates and terms when borrowing.