So Is An 800 Score Worth It
The answer is yes! But a credit score of 750 is probably just as good.
Aiming for 800 and above might be enticing, but its not always necessary, Griffin said. Scores of 800 or above may earn you bragging rights, but they wont net you better terms. Your goal should be to have a score high enough to get you the best rates and scores greater than 750 will qualify you for the best rates.
So, the numbers game for credit scores is like every other statistical measurement in your life: How high is high enough?
If youre happy at 750 and getting the best rates you can go for it!
But if you want to feel like a millionaire without have the bank account to prove it take your best swing at 800 and let the privileges fall where they will!
5 Minute Read
Is A 800 Credit Score Hard To Get
Your 800 FICO® Score falls in the range of scores, from 800 to 850, that is categorized as Exceptional. Your FICO® Score is well above the average credit score, and you are likely to receive easy approvals when applying for new credit. 21% of all consumers have FICO® Scores in the Exceptional range.
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Lower Your Credit Utilization Rate
A high ratio of debt to credit can negatively affect your credit score. You can either pay off this debt or apply for a credit increase to reduce your utilization rate. Another way to do this is by paying your credit cards off early each month so that your posted balance is lower than your spending for the month.
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How Long Will It Take To Get An 800 Credit Score
Thereâs no single answer to how long it will take you to get an 800 credit score because it will depend on a number of factors, including your starting point and whatâs in your credit report.
It generally takes six months to establish credit from scratch, and reaching the âexceptionalâ range will depend on consistent on-time payments , a good mix of credit accounts, limiting credit inquiries, and keeping tabs on your credit report to guard against errors.
Paying your bills on time and maintaining low balances are the two most important steps you can take to get there quickly. But be patient, because the length of your credit history is the third most important factor.
How Long Does It Take To Improve Your Credit Scores
How long it takes to improve your credit scores depends on where youâre starting and how you got there.
For example, building credit from scratch may take less time than rebuilding credit. Recovering from a few recent credit inquiries might not take as long as working back from bankruptcy. And going from poor to excellent credit scores may take longer than going from good to excellent scores.
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Action Steps: How To Increase Credit Score To 800
Step 1 and 2 of how to increase credit score to 800 we check your credit reports to see if we can erase the past.
1. Know Where You Stand And Gather Your Info
The 1st step to how to get to an 800 credit score is to be prepared and organized
Get whatever information you deem necessary.
In general, the most important piece of intel youll need is your credit report.
Get to know your credit report and look through it thoroughly . If you see anything fishy or false make a note of the inaccuracy.
You can get your report here
2. If You Find Errors, Dispute and Remove Them
People in the 800 credit score club have little to no blemishes on their credit reports. So, you have to aim for that type of perfection.
‘Shoot for the moon. Even if you miss, you’ll land among the stars.’- Norman Vincent Peale
This is where we attempt to erase the past ourselves and have a few options to recruit others. You are looking for errors or inaccuracies in your report.
What types of errors are on credit reports?
- Wrong Names, addresses, a loan or credit amounts, etc
- Incorrect dates or payment dates
- Identity Theft: Unknown accounts
- Furnisher Errors
- Re-aging of Old Debts
To find these derogatory marks on your credit report you can get a copy from each credit bureau: Experian, Equifax, and TransUnion.
You want to check all three and if something is on all three reports, then you write and send a dispute letter to all three credit bureaus.
You Can Hire A Credit Repair Service To Do This For You!
Why Aim For A Credit Score Of 800
There are several reasons people should strive to increase their credit score to 800. These include:
- Better credit card deals and lower rates of interest: When creditors believe youre highly likely to pay them back, theyre much more willing to offer you better credit card deals and lower rates of interest. One of the 800 credit score benefits is access to credit cards that offer 0% promotional rates on balance transfers and purchases, lowering your overall cost of credit.
- Higher chance of qualifying for lower interest rates: When you get your credit score to 800, youre also much more likely to benefit from the lowest rates lenders offer. The percentage differences might seem small on face value, but over the lifetime of a loan , you could be thousands of dollars better off.
- More likely to get your application approved: Being able to take out a loan or a credit card is by no means guaranteed. However, if lenders see that you have an 800 FICO score, the vast majority will agree to lend to you. Theres simply no reason not to.
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Best Credit Cards If Your Credit Score Is 800
Having a credit score of 800 gives you access to some of the best credit cards on the market, which typically have a lower APR, offer more rewards opportunities, include more perks and have better welcome bonuses.
The Chase Sapphire Preferred® Card is a popular choice for consumers who want a credit card with a generous welcome bonus but don’t need a luxury card. Chase Sapphire Preferred cardholders can earn 60,000 bonus points spending $4,000 within the first three months of account opening.
Points earned can be redeemed through the Chase Ultimate Rewards® travel portal for a redemption value of 1.25 cents per point, so the welcome bonus alone could be worth $750 in travel rewards, or potentially more if you transfer your points to any of Chase’s travel partners like United or Hyatt.
$50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining, 2X points on all other travel purchases, and 1X points on all other purchases
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.
17.49% – 24.49% variable on purchases and balance transfers
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
What Is A Good Credit Age
What is a good credit history length? Seven years is deemed a reasonable amount of time to establish a good credit history. After seven years, most negative items will fall off your credit report. However, the seven-year time period doesn’t guarantee your credit score and credit history will improve.
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Free Credit Reports From Credit Karma
We recommend , a website and mobile app which allows you to get your latest credit report completely free. Its a great service which also allows you to monitor your credit score and has other features like free tax filings & a credit score simulator.
Read our full review to find out more.
Is That High Score Worth The Effort
The good news is that many lenders consider 760 the cutoff for excellent credit. With a credit score above that number, you’ll receive most of the same benefits as someone with an 800 credit score. You’ll just have to work a little harder and wait a little longer if you also want the bragging rights.
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What Does It Mean To Have An 800 Credit Score
An 800 credit score doesn’t guarantee your approval for credit products or the best terms available. That’s because lenders consider other factors besides your credit, including your income, employment history and debt. Still, lenders are less likely to deny you credit due to your credit history because an 800 credit score demonstrates that your record history managing credit is excellent.
Having an 800 credit score means you’ve done everything possible to prove your creditworthiness. You likely have a lengthy credit history, and you’ve made all your payments on time. You only use a small percentage of your total available credit, and you have a good mix of credit. You clearly have good credit habits, and most lenders view you as a safe bet.
Review Credit Reports Regularly
When working to build an 800 credit score, you should review your credit reports from all three major credit bureaus regularly to ensure theres no false or damaging information on them. Errors on your reports can drag down your score. If you find a mistake, you should immediately report it to the credit bureau to have it removed.
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Grow Your Credit History
As mentioned earlier, various factors determine your credit score. Your credit historys length is one such factor, accounting for 15% of the entire score. This means that attaining that 800 score is impossible without factoring in the length of your credit history.
Therefore, the only solution is to build and grow that credit history over time. One incredible place to start is taking a student loan or a credit-builder loan.
For student loans, you dont require a credit check as most of them are federal funding. This makes it an ideal option for students without any prior credit history.
On the other hand, a credit-builder loan acts as a saving account. You get the loan but cant access it until youve paid all the necessary installments to clear the loan. Once youre through with the installments, you can now access your money. While its a personal loan, it helps build a saving culture while also growing your credit history.
Applying for a credit card can also help grow your credit history. And, if you dont qualify for an unsecured one, you can start with a secured one and grow your way up from there. A secured credit card requires a cash deposit as collateral.
See related:How to Save Money Fast on a Low Income.
Keep Up The Good Work
A good credit history of on-time payments stays on your credit report forever, as long as the accounts stay open. If you have setbacks with credit over time, don’t worry. You can take steps to rebuild credit and work toward a good score again.
After you build up your score, you’ll be able to take advantage of that offer rewards and incentives to qualified applicants.
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Redefine Credit Card Usage
Thirty percent of your credit score consists of your credit utilization rate, which is your debt divided by your total available credit. Typically you’ll want to have a credit utilization rate of 30 percent or less, so if you have a credit card with a limit of $1,000 and you currently owe $300, you’re at that limit. Obtaining more debt could negatively impact your credit score.
Dont Apply For Every Credit Card
Too many credit inquiries in a short period of time can hurt your credit score. This can be difficult to avoid during Christmas when it seems that every department store is offering you a discount for signing up for its credit card.
Applying for new credit card accounts can account for 10% of your credit score, which isnt a huge number, but it can be enough to push you into the 800+ credit score club.
Holly Wolf, who with her husband has a credit score in the 800 range and is a chief marketing officer at Conestoga Bank, says she doesnt open a lot of credit cards and often closes cards she may have opened to get a store discount.
Honestly, this isnt a lifestyle to which most folks aspire, Wolf says. They need to have a nice car a big house and all the accouterments of prosperity over having a high credit score. Living debt-free or with as little debt as possible has enabled us to save for retirement, get the best rates on loans, and be prepared for unexpected expenses when they arise.
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How To Raise Your Credit Score By 100 Points In 45 Days
Insurance carriers use credit scores as part of their calculations to determine the level of risk you would pose to them as an insured. They have found a direct correlation between credit scores and claim activity. Knowing that, it’s important to keep your credit scores in good shape so that your insurance premiums stay in line.
Avoid Closing Old Credit Accounts
Contrary to popular belief, closing an old credit account can actually harm your credit score rather than improve it. By closing an account, youll end up reducing your overall credit availability, which then increases your credit utilization percentage. Another consequence of closing an older credit account is having the average age of your accounts decrease. On average, the total accounts on your credit report should average more than three years to provide creditors a reliable timeframe of your credit habits.
To avoid that from happening, you can occasionally make payments with an older credit card to avoid the account from closing. However, you should try to pay off the balance before the end of the cards statement period to avoid having your score decrease by a few points.
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Clear Your Credit Card Balance With Each Billing Cycle
Besides the automatic payments, you should also ensure that you dont have a credit card balance at the end of your billing cycle. For instance, assuming you used your credit card as a debit card, as suggested earlier, ensure that all the debt is cleared every month. This means you should avoid making purchases that might go beyond your monthly income.
The fact is there is no silver bullet in achieving a higher credit score. And, learning how to how to get 800 credit score requires you to combine various strategies to get there. Knowing the right mix and understanding how each strategy helps your credit score is thus quite important.
I know that seeing all that cash getting deducted from your account isnt easy. However, remember that youve already used that money and you have a similar chance in the coming month. And, the results on your credit score are also impressive.
The Benefits Of A High Credit Score
Simply put, the higher your credit score, the better offers and interest rates youll get.
For example, if you have a score of 700 youre sitting in the good range for most lenders. This means that youll be accepted for a wide range of loans and credit cards.
Achieving a credit score of 800 puts you firmly in the excellent range, and will only increase your options.
Not only will you be accepted for the vast majority of loans and credit cards, but your squeaky-clean track record will often qualify you for lower interest rates on whatever you take out.
In other words, the higher your score, the less youll have to pay back when borrowing because youve proven that youre a safe option for lenders to get their money back.
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How Many Points Does A Hard Inquiry Affect Your Credit Score
A single hard inquiry will drop your score by no more than five points. Often no points are subtracted. However, multiple hard inquiries can deplete your score by as much as 10 points each time they happen.
People with six or more recent hard inquiries are eight times as likely to file for bankruptcy than those with none. Thats way more inquiries than most of us need to find a good deal on a car loan or credit card.
Realistically, only a narrow group of people has good reason to be cautious about the effect inquiries could have on their FICO score, Watt said.
Heres who might be concerned, according to Watt:
- People who take an unusually long time to shop for a new mortgage or auto loan.
- Consumers who shop around in the same year for several different lines of credit not associated with a mortgage or auto loan.
- People who know before they begin applying for credit presumably from conversations with creditors that their credit score barely qualifies them for their desired credit offering.
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