In Search of Credit Score Nirvana

Jeff Rose, a 34-year-old financial planner in Carbondale, Ill., is the kind of guy who has a top-drawer credit score of 780, which is 69 points above the median—and still he wants more. Bent on nudging his score past 800, Rose applied for a second credit card last year, even though he doesn’t need one. “Some hiccups could happen and I get whacked and I’m a 720, so you shouldn’t be too comfortable,” says the founder and chief executive officer of Alliance Wealth Management.

In the three years since the credit crisis ushered in an era of household budget austerity, a gold-plated credit score has become a source of comfort, even a status symbol for many people. Consumers with elevated scores typically get the lowest rates on mortgages and car loans, along with elite credit card offers. “Given the importance of credit scores in borrowing, job searches, and even insurance premiums, it’s no surprise that some consumers look at their credit scores as a way to keep score against the Joneses,” said Greg McBride, senior financial analyst at Bankrate.com, a website that aggregates rate information from thousands of institutions, in an e-mail.