How To Get A 800 Credit Score?
Aiming for an 800 credit score can help you reach a well above average credit score, and you will fall into the range of the highest credit scores for the FICO credit score model. The borrowers who fall into this credit score range are usually posed as the least amount of risk for the lenders.
The benefits of landing an 800 credit score are endless. Still, the most favorable one is getting a chance of scoring the most favorable terms and conditions, like paying the lowest possible interest rate if you are approved by a lender.
Our blog will help you learn about what it is like to have an 800 credit score, how to get them, and what benefits you get along with it.
What Is It Like To Have An 800 Credit Score?
An 800 credit score means your score is way better than a good credit score. As per the most popular VantageScore and FICO credit scoring models, an 800 credit score is considered an exceptional credit score. About 21.8% of US citizens have a score of at least 800, as FICO has reported.
It is a very high score, and to score this high, you have to do an outstanding job managing your credit scores. It also means you have a long credit score history, on-time payment history, a good credit score mix, and do not use a big percentage of your total credit limit.
Based on this excellent performance of your credit score history and excellent credit habits, the majority of the lenders will be considerate about approving your credit building loan compared to other low credit scores applicants.
How to Achieve an 800 Credit Score
It is not 100% guaranteed that your credit score will reach 800; however, applying the following tips would definitely help you improve your overall credit score.
1. Building/Rebuilding The Credit History
The length of your credit history is accountable for 15% of your entire credit score. A Negative, minimum, or even a no credit history can hinder you from reaching an 800 credit score. Focus more on building or/and rebuilding your credit score history to solve this problem. You can take out a credit-builder loan or apply for your credit card to tackle this issue.
A credit-builder loan is a non-traditional personal loan designed to help and add healthy payment history to your credit report. A lender sets aside an amount of money in a savings account or in a CD Certificate of the deposit that is given to you after the loan payments are completed. Unlike anything, a traditional personal loan would hold where a lender directly deposits lump sums into your account.
A second way to build your credit history is by using a credit card responsibly. You can always apply for a secured credit card if you don’t wish to have one or don’t qualify for one. You must deposit a certain amount when you take out a secured credit card held in a security account. The amount acts as equal to your credit limit.
2. Paying Bills On Time
Your payment history accounts for 35% of the FICO score, the most important credit score factor. Due to this factor, you should avoid missing out on payment due dates. Your credit bureaus immediately get notified if your bills are past due 30 days by your creditors.
A late payment on your credit report causes serious damage to your overall credit score. You can avoid late payments of your bills by keeping tabs on all utilities using a spreadsheet of their due dates, or you can get enrolled in autopay.
The majority who have achieved an 800 credit score or even higher pay off all their balances full monthly, as reported by FICO.
3. Keeping A Low Credit Utilization Rate
Your credit utilization ratio accounts for 30% of your credit score. The second factor plays an important role in your credit score payment history. This credit utilization ratio calculates the credit amount used vs. the total credit limit.
For example, if $10,000 is your total credit limit, always try not to use more than $3,000 —30% of it. To further boost your credit score, you can keep your credit utilization ratio closer to 0%, if possible at all.
4. Monitor Credit Score and Credit Reports
Monitoring your credit reports and credit scores helps you keep track of your progress. Checking your credit score is free if you know a free website for credit scoring. Many of these websites now offer recommendations on how you can improve your overall credit score.
Credit reports reviews are important because mistakes can happen sometimes. So don’t forget to review your reports to make certain that the information listed on your credit reports doesn’t contain any liability, like collection account and late payment. You can visit AnnualCreditReport.com to view all three of your reports for free weekly.
If you find any error in any reports, you can file a dispute for each listed error and have it removed by their respective credit bureau.
What Are The Benefits Of 800 Credit Score
An 800 Credit score has several benefits: easy loan approvals, low APR rates, better offers on credit cards, and low insurance premiums.
1. Better And Easy Loan Approval Odds
When you have an 800 credit score, you stop worrying about how to meet the minimum credit requirements of the lenders. You can easily apply for a mortgage, private student loan, and personal loan. Most of the time, the lenders approve your application if other requirements like debt and income are completely documented.
2. Lower APR Rates
An 800 credit score will usually get you the best and lowest interest rate available if your application for a loan gets approved.
3. Better Offers On Credit Card
People with 800 credit scores are called high-qualified borrowers. If you become a highly qualified borrower, you can easily qualify for the 0% APR credit cards.
These cards are interest-free credit cards and can last up to 21 months on shopping and transfers. If you are paying the balance in full before the expiry of the promotion, you would not have to pay interest.
Apart from this, it is highly likely that you will qualify for the best traveling credit cards. A few of them come with many different traveling bonuses once you reach the minimum spending requirements.
4. Lower Insurance Premiums
While working on your insurance premium, a few insurance companies factor in your credit score history. At least 800 credit score holders can get you generous discounts on auto insurance and/or homeowner insurance premiums if you live in a state where it is allowed to provide credit-based insurance.
Maintenance of 800 Credit Score
Practicing good credit habits will always help you maintain your position as a high-qualified borrower and keep your credit scores in the highest range. The credit score is never set in stone; rather, it fluctuates on the different factors we’ve mentioned above. You need discipline and consistency once you reach an 800 credit score because your work is far from finished.
Conclusion
With an 800 credit score rank, you become an excellent credit risk because to achieve a rank this high, one must practice consistency and good credit habits of paying bills on time and a record of the wisely used credit limit.
Luckily, several lenders consider 760 the cutoff for excellent credit. With a credit score of 760 or above, you will receive the same benefits as a person with an 800 credit score. Remember that the key is consistency; the score fluctuates depending on the many factors.
