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What would you pay for 800's; what's it worth to you?

Revelate
Moderator Emeritus

Re: What would you pay for 800's; what's it worth to you?

For me this varies based on the state of the overall credit market.

 

Actually currently, in everything but the mortgage space you could actually PAY ME to keep my current ~700ish scores; the fact is, 800 is kinda irrelevant right now - my poor, downtrodden benchmark score of EQ Beacon 5.0 is at 693... which is higher than the DCU maximum underwriting line for everything other than a mortgage or a HEL that I care about.

 

HELOC 3.25%; Auto loan whatever their best posted rate is which is usually close to best in the industry, both UW at a 675.  Oh hurt me!

 

Also it seems clear Chase doesn't really care either, issued me yet another credit card yesterday bringing me up to 4 with a dirty file:

 

Freedom: 4K

CSP: 22K

IHG: 22K

FU: 22K

 

As a result, when I can sort my auto and HELOC needs at fantastic rates, and I can get everything I want from arguably the premier CC issuer, and to be clear other than having to recon the Freedom I've never once been denied for any CC application I've made.  With the current market, not having an 800 just ain't a problem.

 

Back in 2010 though, none of this would've been possible and there an 800 would've been worth something; how much depends on what I needed at the time.

 

ETA: if you'd written this as what would you pay for a 700 in the current market, yeah, $, no doubt.

 




        
Message 11 of 18
CAPTOOL
Senior Contributor

Re: What would you pay for 800's; what's it worth to you?

I've been over 800 on two of mine; EX and TU. It was nice, but nothing I'd be willing to "pay" for.

Message 12 of 18
BrutalBodyShots
Super Contributor

Re: What would you pay for 800's; what's it worth to you?

Revelate, so in the current market are you saying that one can obtain just as good an interest rate with a 700 score as an 800 score, or are you not talking mortgages?

 

I've always been under the impression that for the best mortgage rates you need 740-760.  Maybe that was years ago though.  I took out my last mortgage in 2004 so it has been a while. 

 

Perhaps I shouldn't have quantified a score in the thread title.  Instead a title such as "what would you pay for excellent credit" would suffice; basically to get from wherever you are... 550, 600, 650 etc. to the score you personally feel qualifies you for anything you'd ever want (best mortgage rate, auto loan rate, best CC's you desire, etc).

Message 13 of 18
Revelate
Moderator Emeritus

Re: What would you pay for 800's; what's it worth to you?


@BrutalBodyShots wrote:

Revelate, so in the current market are you saying that one can obtain just as good an interest rate with a 700 score as an 800 score, or are you not talking mortgages?

 

I've always been under the impression that for the best mortgage rates you need 740-760.  Maybe that was years ago though.  I took out my last mortgage in 2004 so it has been a while. 

 

Perhaps I shouldn't have quantified a score in the thread title.  Instead a title such as "what would you pay for excellent credit" would suffice; basically to get from wherever you are... 550, 600, 650 etc. to the score you personally feel qualifies you for anything you'd ever want (best mortgage rate, auto loan rate, best CC's you desire, etc).


I excluded mortgages in my statement heh, yes having below 740 or 760 when we're talking loan insurance does make a difference and jumbo loans are whatever the lender wants.

 

Everything else though, ain't no big thing imo.  Many credit card products only have a singular rate now, and for transactors anyway (which we should all aspire to be here) APR is an irrelevant measurement anyway.  Auto loans and HELOC's depending on lender can obtain tier 1 at a lower score than a 700 even, and be competitive with everyone else in the market too.

 

 

Admittedly, would make a difference in personal loans too, but that's not a terribly common product compared to even mortgages I suspect even on this forum let alone entire consumer base.




        
Message 14 of 18
takeshi74
Senior Contributor

Re: What would you pay for 800's; what's it worth to you?

I've been around and just over 800 for a little while but I wouldn't pay anything if I was under.  It didn't take me long to improve but most of my credit was already in good shape before I began working on it.  Trying to rely on shortcuts and quick fixes seems to tend to get people in trouble.  Those with less than good credit probably need to work on much more than just credit and include things like budgeting, building a liquid cash reserve for emergencies instead of relying on credit, saving for retirement., etc.

Message 15 of 18
BrutalBodyShots
Super Contributor

Re: What would you pay for 800's; what's it worth to you?

There's certainly some truth to that, but there are exceptions to everything.

 

There are people out there with less than good scores because of 1 or 2 derogs that were completely out of their control or even that they were unaware even existed that have nothing to do with budgeting, ability to pay, etc.  With the system the way it is, this person suffers for 7 years the same way someone that knowingly and intentionally acquired their derogs.  To the person that may have been in the dark about their score getting bashed from 800 down to 620 that's looking toward a mortgage in the next year or two, to them, it certainly would be "worth" something to get back to their previous credit prowess.

Message 16 of 18
NumberJohnny5
Frequent Contributor

Re: What would you pay for 800's; what's it worth to you?

I'm with Revelate. I'm currently sitting at 745-767 which has given me the best rate on my new car purchase and decent CLI's on my credit cards. My loan balances are holding my scores down. Since I currently qualify for prime rates even if I was purchasing a house I really have no need for 800s right now so it doesn't have any $$$ value to me.
CapitalOne Quicksilver $14700 - Barclaycard Ring $2000 - Amex EveryDay $31000 - Discover IT $34500 - Chase Sapphire Reserve $30000 - Chase Freedom $6000 - Chase FU $20000
Message 17 of 18
BrutalBodyShots
Super Contributor

Re: What would you pay for 800's; what's it worth to you?

Makes sense.  Naturally, the higher ones scores the less value (diminishing returns) they'll likely see in raising their scores higher.

Message 18 of 18
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