How to Get an 800 Credit Score
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A high FICO score can give you access to better financial products and favorable rates. While FICO scores range anywhere from 300 to 850, for many people, having an 800 or higher credit score is the ultimate goal. In this article, weโll discuss what having an 800 credit score means and what you can do to get an 800 credit score.
According to FICO, 23% of Americans have a credit score of 800 or greater. Scores this high are considered exceptional and are well above the national average score of 715.
If you have an 800 credit score, youโve proven to lenders that you understand how to follow good credit habits. You pay your bills on time, maintain a low credit utilization ratio, and keep your credit accounts open for an extended period.
Does that mean youโll have access to every available credit product? Not necessarily. A high score doesnโt guarantee approval because it isnโt the only factor lenders consider. It does, however, improve your odds.
Earning an 800 credit score is a big accomplishment. It takes time and a commitment to sound financial habits. Here are a few ways to get an 800 credit score.
Payment history is the most important credit score component, making up 35% of your FICO score. One missed payment can significantly impact your score. Because it will stay on your credit report for seven years, missed payments should be avoided at all costs.
One of the easiest ways to ensure you never miss a payment is to set up automatic payments. For example, most credit card issuers allow you to automatically pay your minimum, statement, or full balance. If you have bills that donโt offer automatic payments, set up a calendar reminder that alerts you a few days before each payment is due.
Never missing a payment is the first step to achieving an 800 credit score.
Credit utilization is the percentage of the total available credit you use each month. Keeping this ratio as low as possible can help you achieve your goal of an 800 credit score. Most experts recommend that your credit utilization should be at most 30%.
One key way to respect this rule is to set a payment reminder a few days before your credit card statement closes. Issuers report statement balances to the credit bureaus and will report a low utilization if youโve paid your balance before the closing date.
If possible, try to avoid closing your revolving credit accounts. Roughly 15% of your credit score is determined by your average length of credit history. If you close an account, the average length will be reduced.
Call your card issuer if you have a credit card with an annual fee thatโs no longer worth it. They may let you keep the card without paying the fee.
Having a variety of credit accounts is beneficial to your credit score. Letโs say, for example, you have an auto loan or a personal loan but never wanted to have a credit card. Adding a credit card to your credit profile could boost your score because it improves your account mix. Adding new credit accounts can also help reduce your credit utilization.
Over one-third of people participating in a Consumer Reports investigation discovered at least one error in their credit report. Errors can cause inaccuracies in your credit score.
Reviewing your credit report regularly can help you spot potential errors and report them to the appropriate credit bureau. Experian allows you to request your credit score and credit report for free, and MyFICO will send you a monthly Equifax credit report, also for free. You can also get a free copy of your credit reports from all the major credit bureaus via AnnualCreditReport.com.
There are several advantages to achieving an 800 credit score. Some of the most notable benefits include:
Having an 800 credit score boosts your chances of securing the best available rates from lenders. This can save you hundreds or thousands of dollars in annual interest charges.
If you have a credit score of 800, you wonโt need to worry about your score not being high enough for approval. However, itโs important to understand that lenders will also consider other factors like income and debt before making a final decision.
A high credit score will give you access to some of the most sought-after credit cards. These cards can help you earn attractive cash back and travel rewards.
Insurance companies use your credit score when determining your insurance premiums. With an 800 credit score, you can secure the best available homeowners and auto insurance rates.
If you have an 800 credit score, the hard part is done. Now, your job is to ensure you can maintain it. To do this, you must continue making all your monthly payments on time. You must also keep your credit card balances as low as possible to minimize your credit utilization.
Another good habit to develop is regularly checking your credit report for errors. If you donโt, a mistake youโre unaware of could ruin your credit score unless you report it in time.
Having an 800 credit score is a significant accomplishment. Youโve proven your ability to make smart credit decisions. That hard work will pay off as you gain access to sought-after reward credit cards and the best personal loan rates.
It depends on your current credit score. It could take several years if you have a low score or considerably less if you already have a relatively high credit score.
While thereโs no magic number for how long it will take to achieve an 800 credit score, you can raise your credit score quickly by practicing good financial habits.
Having an 850 credit score is a rare feat. Only 1.31% of all Americans have a perfect credit score. While having a credit score of 850 is possible, it will take several years of good borrowing habits. Plus, itโs important to remember that you donโt need an 850 credit score. Youโre likely to receive the best rates with a 760 credit score.
No. The highest possible credit score is 850.
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