For a credit score that will get you the loan approval you want, aim for an 800 credit score. It may not be perfect, but it will put you in the top range for credit scoring.
We will show you how to get an 800 credit score in a few easy steps.
What Does An 800 Credit Score Mean?
A credit score of 800 or above means that you are placed in the ‘exceptional’ credit score range of FICO’s scoring model, which is in the top range.
FICO is the credit scoring model used by 90% of lenders. The exceptional range goes from 800-850 in their model.
This score is relatively uncommon, with less than a quarter of people achieving this range with their credit score. However, this 800 credit score will help you in many ways, although it doesn’t guarantee anything.
How To Get An 800 Credit Score
So, how do you achieve this score and improve your chances of getting credit? Let’s look at some of the best ways to get an 800 credit score.
Pay Your Bills On Time, Every Time
The best way to show your lenders that you are a responsible borrower is to pay your bills promptly and consistently.
One of the most crucial factors in determining your credit score is your payment history. So paying your bills on time occasionally won’t cut it; you need to pay them on time, every time. Consistency is key.
If you miss a payment, as long as you fix this within 30 days, it shouldn’t hurt your credit report.
Keep Your Credit Card Balances Low
How you use your credit is another important aspect of getting your credit score up into that exceptional range. Your credit utilization rate is how much you currently owe to debtors divided by your credit limit set by them.
For example, if you have a credit card with a limit of $5,000 and your current balance is $2,500, then your credit utilization rate is 50%. In other words, you are using half of the credit that is available to you.
Be Mindful Of Your Credit History
How long you have managed your credit will account for 15% of your credit score, so it is essential to take a long-term view.
Credit scores will consider your oldest account and your newest account and the average time you’ve held all your credit accounts.
This is important because you may be tempted to close an old credit account if you have cleared the balance.
However, this will reduce the time of your credit history and may affect your credit score. Consider asking the lender for a zero-fee account and keep it open.
Improve Your Credit Mix
It’s a good idea to have various credit accounts to demonstrate your ability to manage different types of credit. Taking out a manageable credit card can improve your credit mix if you only have a personal or car loan.
This credit mix accounts for 10% of your credit score.
Review Your Credit Reports
Keep an eye on your credit reports, as it is essential to know what’s on there. If there is inaccurate or out-of-date information on your credit report, it could negatively affect your score.
Contact your lender to correct any wrong information as soon as you notice it, or speak to the credit bureau.
Benefits Of Having An 800 Credit Score
There are a lot of benefits to having a credit score of 800 or better. Below are just a few.
Better Loan Approval Odds
With a credit score of 800 or above, the chances of getting approved for a loan increase. A score of 800 is likely to exceed the requirements of most lenders.
Your loan approval odds will increase if you meet their other requirements, such as employment stability and income.
Lower Interest Rates
With a credit score of 800, you are considered a lower-risk borrower and, as such, may be offered lower interest rates on any loan or credit card.
Paying lower interest rates will save you money in the short and long term on credit card balances, personal loans, mortgage payments, and car loan repayments.
Better Credit Card Offers
Those with a credit score of 800 or above are more likely to be offered credit cards with the best 0% APR. These cards can give you up to 21 months of 0% on balance transfers and purchases.
You won’t pay any interest on the credit if you clear the balance before this promotional period expires.
Lower Insurance Premiums
Many states allow insurance companies to consider your credit score when deciding your insurance premium. If you live in one of these states, your 800 credit score could also mean you pay less on auto and homeowners insurance premiums.
How To Maintain An 800 Credit Score
Once you achieve an 800 credit score, you will need to maintain it. Just because you got there doesn’t mean your score will remain the same forever.
It will fluctuate, so you need to have a strategy to keep your credit score in the ‘exceptional’ range.
For this, you need to develop and maintain good credit habits. As stated before, about achieving an 800 credit score, the same principles apply to keeping it.
Pay your bills on time and consistently, monitor your credit utilization rate, manage your credit history, improve your credit mix and review your credit reports regularly.
With all these steps, you should be able to achieve and maintain your 800 credit score.
Final Thoughts
An 800 credit score is something only 23% of people achieve; you could be one of them by following our simple steps.
We hope you have found our guide on how to get an 800 credit score useful and that you will continue to improve your credit score.
As a current Mortgage Underwriter with 15 years of experience, I have seen my fair share of money-related issues. Whether that be high levels of debt, not enough credit, or simply a lack of funds - I’ve had clients who fit into these categories.
Here I will share tips, tricks, and experiences on how you can get yourself back in control of your finances.
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