Got Perfect Credit? 3 Surprising Perks You Might Enjoy

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FICO, the most commonly used credit scoring method in the U.S., has scores that range from a low of 300 to a high of 850. As of the third quarter of 2023, 1.54% of U.S. consumers had a perfect credit score, says Experian, one of the three major credit reporting bureaus. So if you're part of that statistic, you're a member of a pretty elite crowd.

You may be aware that with perfect credit, you're more likely to get approved for an auto loan or mortgage than someone whose credit is lower. You're also more likely to be approved for some of the top credit card offers out there. But here are some less-obvious perks you might enjoy with perfect credit.

1. Higher spending limits on credit cards

Credit card issuers commonly take your income into account when deciding what spending limit to offer you. It stands to reason that someone making $100,000 a year, for example, might get a higher limit than someone earning $50,000.

But it's not just your income that's considered when determining your spending limit. Your credit score also plays a role there.

Having perfect credit sends the message that you've always paid back every loan or line of credit that's been extended to you. Because of this, a credit card issuer may be more likely to start you out with a higher limit or approve that sort of request if you ask.

But remember, the higher your credit limit, the more tempting it might be to spend. And carrying a credit card balance is a good way to go from having perfect credit to a lower score. Granted, a small balance may not harm your score much. But using more than 30% of your available credit is not a good idea from a credit score perspective.

2. An exemption from putting down a utility bill deposit

When you sign up for utility services (like electricity or water), it's common to have to put down a deposit. Remember, your utility providers are generally giving you access to service before you have to pay anything. That deposit protects them in case you don't pay up.

But with perfect credit, there's a good chance you'll have that deposit requirement waived. And if that's not offered off the bat, all you might have to do is ask.

3. Savings on insurance

When you buy insurance, you're not asking to borrow money. Rather, you're paying a fee for coverage. Because of this, you'd think your credit score wouldn't matter when purchasing insurance. But surprisingly, perfect credit could lead to better rates for products like homeowners, auto, and life insurance .

Of course, there are other factors that go into calculating insurance premiums for these products. The value of your home will be accounted for in the context of homeowners coverage, as will its features. Putting in a pool, for example, is likely to raise your premiums even with amazing credit.

Similarly, when applying for life insurance, factors like pre-existing health conditions and whether you're a smoker are big ones for insurers to consider. But applicants with perfect credit may still be eligible for some sort of discount after those other factors are accounted for.

Even with perfect credit, though, it pays to shop around for insurance coverage. Getting multiple quotes is an easy way to spot the best deals.

Don't sweat it if you don't have perfect credit

Clearly, there's lots to be gained from having perfect credit. But here's another secret: You don't need to chase a perfect credit score as long as you're able to get pretty close.

Once your credit score reaches 800, it almost doesn't matter if it's an 805, 820, or a perfect 850. You're likely to benefit from these perks either way. So while it pays to do what you can to boost your credit score, don't spin your wheels chasing that 850 when it isn't necessary.

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