Credit Score - diminishing rate of benefit?

Question

I usually see many advertisements and such claiming that a good credit score is like 720 and that you can pretty much qualify for everything. I recently checked my credit score and in one year went from 642 to 805. I was more than ecstatic to see that, but now I am wondering what benefit is there from say a 750 score vs a 805 score vs a 900 score. Does it really mean anyting in terms of value when applying for a loan? Will a mortgage rate go from say 6.8 to 6.7 ? I'm just wondering if I should consciously try to raise my score or if there is really no point.

Thanks!

Answer 1

Do what you can to keep it where it is.  That means paying the bills on time and not getting over-extended.  When you go apply for a new car loan or home loan the high 805 score will get you approved instantly and will get you the lowest interest rate available.  A higher score means you are less of a risk to the lender so they charge you less interest.